The Impact of the Lack of Coordination on Supply Chain

question 52

Multiple Choice

The impact of the lack of coordination on supply chain processes decreases for the following measure:

• A) manufacturing cost.
• B) level of product availability.
• C) transportation cost.
• D) replenishment lead time.

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Definitions:

Contribution Margin

The amount remaining from sales revenue after variable costs have been deducted, indicating how much contributes to covering fixed costs and generating profit.

Constrained Resources

Resources that limit the company's ability to produce goods or services, often resulting in bottlenecks in the production process.

Opportunity Cost

The benefit, profit, or value of something that must be given up to acquire or achieve something else.

Make or Buy Decision

The process of deciding whether to produce a good or service in-house or to purchase it from an external supplier.