The Cycle View of the Supply Chain Is Useful When

question 21

Multiple Choice

The cycle view of the supply chain is useful when considering operational decisions because

• A)it categorizes processes based on whether they are initiated in response to or in anticipation of customer orders.
• B)it specifies the roles and responsibilities of each member of the supply chain.
• C)processes are identified as either reactive or speculative.
• D)it focuses on processes that are external to the firm.

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Definitions:

Short-Term Obligations

Liabilities or debt obligations that are due to be paid within a year or less, typically involving operating expenses or short-term loans.

Leverage Ratio

A financial ratio that measures the amount of debt used in a company's financing structure in comparison to its equity or assets.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations.

Budget

Company’s plan for how it will raise and spend money during a given period of time.