When Brian Took Over the Position of Purchasing Manager for Gray

question 127

Multiple Choice

When Brian took over the position of purchasing manager for Gray Lumber Company,a regional building materials supply company,he found a JIT system in place,but in spite of that the company had frequent problems related to inventory.Shipments were often late or incomplete,there was little communication from the company's vendors,and only superficial attempts were being made to address the problems.For companies like Gray Lumber,the critical factor in having a successful JIT system is:

• A) distributional excellence.
• B) shared data.
• C) EDI systems.
• D) CPFR systems.
• E) cooperation.

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Definitions:

Bid-Rigging

Bid-rigging is an illegal agreement between parties to manipulate the outcome of a bidding process to their advantage, often at the expense of others.

Knockout Auctions

Auctions where bidders are eliminated progressively as the bid value increases until only the highest bidder remains.

Amnesty

A governmental act of pardoning a group or class of individuals from legal penalties, typically for political offenses, as part of a reconciliation process.

Bid-Rigging

A form of fraud where competing parties conspire to determine the winner of a bidding process, undermining the competitiveness of the process.