Which of the Following Is True

question 15

Multiple Choice

Which of the following is true?

• A)The volume of WIP is higher in an ATO process supply chain compared to MTO.
• B)In an ATO process supply chain,the degree of customization is low.
• C)In an ATO process supply chain,the WIP inventory held as buffer is high.
• D)In an ATO process supply chain,the POP occurs further downstream than in an MTO process supply chain.

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Definitions:

Current Monetary Liability

A short-term financial obligation that is expected to be settled within a year using cash or other monetary resources.

Undiscounted Amount

The total amount of cash flow without adjusting for its present value or interest rates.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often on a financial or commodity market.

Hedge Inventory

Hedge inventory involves the use of financial instruments or market strategies to offset potential losses or gains in the inventory's value due to price fluctuations.