In an Effort to Reduce Total Cost of Ownership (TCO)

question 304

Multiple Choice

In an effort to reduce total cost of ownership (TCO) , a company is outsourcing a major component to an overseas supplier. What is the most appropriate action to reduce supply chain risk?

• A) Increase forecast accuracy
• B) Deploy strategic inventory buffers
• C) Invest in redundant manufacturing process
• D) Negotiate a competitive cost contract for transportation

---

Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced in a country.

Aggregate Quantity

The total amount or volume of a particular good or service produced or consumed in a given period.

Aggregate Demand Curve

A graphical representation showing the relationship between the overall price level in the economy and the total demand for goods and services at that price level.

Real Output

The total value of all goods and services produced by an economy, adjusted for inflation, representing the actual productivity.