The Three Tactics Companies Have Been Using to Reduce the Number

question 22

Multiple Choice

The three tactics companies have been using to reduce the number of suppliers are

• A) consolidating similar suppliers, purchasing families of parts, modular production.
• B) modular production, purchasing families of parts, reshoring.
• C) modular production, lean production, reshoring.
• D) consolidating similar suppliers, modular production, lean production.

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Definitions:

Periodic Inventory System

A method that relies on occasional physical counts of inventory to determine the ending inventory balance and the cost of goods sold.

Purchase Return

Occurs when a buyer returns merchandise to the seller for a refund or credit due to various reasons such as defects or dissatisfaction.

Merchandise Defective

Goods received or in inventory that do not meet the seller's or buyer's specifications and may need to be returned or discarded.

Net Method

An accounting method where discounts for early payment are anticipated and recorded as reductions of the cost of purchases or an expense.