Costs Incurred by Defects That Occur Prior to Delivery to the Customer

question 24

Multiple Choice

Costs incurred by defects that occur prior to delivery to the customer are called:

• A)external failure costs.
• B)internal failure costs.
• C)appraisal costs.
• D)prevention costs.

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Definitions:

Dummy Sources

Artificial shipping source points created when total demand is greater than total supply to effect a supply equal to the excess of demand over supply.

Transportation Problem

A logistical dilemma involving the determination of the most cost-efficient routing of goods from several supply points to various demand locations.

Routes

The paths or courses taken to get from one location to another, often used in logistics, navigation, and network design.

Optimal Solution

The best possible outcome or answer found through a particular process of calculation, reasoning, or problem-solving, considering all constraints and objectives.