A Method That Assigns Relative Weights to the Selection Criteria

question 50

Multiple Choice

A method that assigns relative weights to the selection criteria and selects supplier with the maximum total score is the ______.

• A)optimization method
• B)factor rating method
• C)analytic hierarchy process (AHP)
• D)sourcing algorithm

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Definitions:

Direct Materials

Raw materials that are directly used in the manufacturing of a product and can be directly traced to the goods being produced.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead to individual units of production based on a specific activity base.

Direct Labor-Hours

The total hours worked directly on the production of goods.

Manufacturing Overhead

All indirect costs associated with the production process, including costs related to factory operation but not directly traceable to the product, such as maintenance and utilities.