Companies Can Set More Stringent Quality Requirements for Their Suppliers

question 76

Multiple Choice

Companies can set more stringent quality requirements for their suppliers by ______.

• A)implementing a comprehensive supplier certification program
• B)requiring vendors to obtain ISO certification
• C)terminating suppliers if they supply certain percentage of defective input
• D)not outsourcing any raw material purchases

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Definitions:

Economy Growth

An increase in the production of goods and services in an economy over a period of time, often measured by the growth of the Gross Domestic Product (GDP).

Inflation Rate

The progression rate at which the cost of consumer goods and services climbs, thereby eroding purchasing potential.

Price Level

The Price Level is a measure of the average prices of goods and services in an economy at a specific time.

Percentage Change

A mathematical calculation that represents the degree of change over time, expressed as a fraction of the original value.