Which of the Following Is NOT True About Supply Chain

question 24

Multiple Choice

Which of the following is NOT true about supply chain dynamics?

• A) The supply chain is a highly interactive system.
• B) There is an accelerator effect in the supply chain due to replenishment lead times.
• C) The best way to improve the supply chain is to increase the total replenishment time and to feed back actual demand information to all levels.
• D) All of the above statements are true.

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Definitions:

Factory Overhead Cost

Indirect manufacturing costs not directly tied to the production of goods, such as utilities and rent for the production facility.

Finished Manufactured Product

Items that have completed the manufacturing process and are ready for sale.

Conversion Cost

Costs incurred during the transformation of raw materials into finished goods, specifically focusing on direct labor and manufacturing overhead expenses.

Direct Materials

Direct materials refer to the raw materials and components that are directly used in the manufacturing of a product, often considered a variable cost.