The Lack of Coordination Within a Supply Chain Will Result

question 55

Multiple Choice

The lack of coordination within a supply chain will result in an increase in

• A) profitability.
• B) inventory accuracy.
• C) replenishment lead time.
• D) level of product availability.
• E) transportation cost.

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Definitions:

Customer Satisfaction

A measure of how products and services supplied by a company meet or exceed customer expectation.

Appraisal Costs

Costs associated with the inspection and testing of both raw materials and finished products to ensure quality standards are met.

Prevention Costs

Costs that are incurred to keep defects from occurring.

Internal Failure Costs

Costs associated with defects found before the delivery of a product to the customer, including scrap, rework, and downtime.