A Belt Working in a Supply Chain Environment Has to Make

question 108

Multiple Choice

A Belt working in a supply chain environment has to make a decision to change suppliers of critical raw materials for a new product upgrade.  The purchasing manager is depending on the Belt's effort requiring that the average cost of an internal critical raw material component be less than or equal to $4,200 in order to stay within budget.  Using a sample of 35 first article components, a Mean of the new product upgrade price of $4,060, and a Standard Deviation of $98 was estimated. Select the answer that best states the Practical Problem.

• A) If the average cost per component is $4,200 or less, then the purchase manager will introduce the new product upgrade with new components.
• B) If the average cost per component is greater than $4,200, then the purchase manager will introduce the new product upgrade with new components.
• C) Only if the average cost per product upgrade is $4,060, will the purchase manager introduce new product upgrades with new components.
• D) If the average cost per new product upgrade is less than $180, then the purchase manager will introduce the new product upgrade with new components.

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Definitions:

Borrowing

The act of receiving something from someone with the intention of returning it or its equivalent later.

Decimals

Numerical symbols used in the decimal system, involving a point that separates the whole number from the fractional part.

Household Measurement

A system of units used in cooking and for other household tasks, such as cups, tablespoons, and teaspoons.

Apothecary Unit

Historical term referring to a system of measurement used by pharmacists to prepare, mix, and dispense medicinal drugs, now largely replaced by the metric system.