One Way to Reduce the Risks Associated with a Global

question 15

Multiple Choice

One way to reduce the risks associated with a global supply chain that operates on just-in-time principles is to

• A)depend on one supplier for an important input.
• B)outsource the production of inputs only to advanced countries.
• C)hold an excess buffer stock of inventory.
• D)source inputs from several suppliers located in different countries.
• E)avoid using electronic data interchange.

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Definitions:

Pension Plan Assets

Funds and investments held by a pension fund to meet future obligations to retirees.

Prepaid Pension Costs

Expenses paid in advance for pension benefits, typically recorded as an asset on the balance sheet.

Unrecognized Net Loss

A loss that has occurred but has not been reported in the financial statements because it has not yet been realized through a transaction.

Projected Benefit Obligation

A measurement of the present value of future pension benefits owed to employees, based on factors like salary history and years of service.