Which of the Following Is a Key Strategic-Type Decision in Supply

question 31

Multiple Choice

Which of the following is a key strategic-type decision in supply chain management?

• A) determining what part of the value of the product should be made in-house
• B) determining when to start the supply chain motor
• C) synchronizing supply with demand
• D) all of the above

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Definitions:

Fair-Value Hedge

A hedge that is used to mitigate the risk of changes in the fair value of an asset, liability, or an unrecognized firm commitment.

Cost of the Hedge

The expenditure associated with implementing and maintaining a hedge against financial risk.

Fair-Value Hedge

A hedge of the exposure to changes in fair value of an asset or liability or an identified portion of such an asset or liability that is attributable to a particular risk.

Exchange Gain

A profit arising from changes in foreign exchange rates that benefit the value of a company's foreign currency denominated assets or liabilities.