Which of the Following Is a Typical Consideration in Favor

question 40

Multiple Choice

Which of the following is a typical consideration in favor of multiple sourcing?

• A) Special tooling is required
• B) A single source supplier will have an improved commitment
• C) Avoid complacency on the part of a supplier
• D) Improved interdependency and risk sharing result from single sourcing
• E) Time to market is critical

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Definitions:

Savings

Money that is set aside from disposable income, often placed in interest-bearing accounts for future use or investment.

Inventory Investment

The commitment of resources towards the acquisition and holding of stocks or goods to be sold or used in future production processes.

Level of Inventory

Level of Inventory refers to the quantity of goods or materials on hand at a particular time within a business.

Inventory Investment

The purchase of goods and materials that are not immediately sold but are kept in stock for future sales or production.