An Organization Has Developed Three Alternate Sales and Operations Plans

question 69

Multiple Choice

An organization has developed three alternate sales and operations plans for the coming six months and now must choose between them. They should consider:

• A)how their plan will impact supply chain partners.
• B)what the cash flows are like.
• C)how flexible the plan is.
• D)All of these are useful criteria for a sales and operation plan.

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Definitions:

Novation

The creation of a new contract through the substitution of a third party for one of the original parties to a contract by the consent of all.

Third Party

An entity not directly involved in a transaction or legal agreement but who may be affected by it.

Force Majeure

A contractual clause that frees both parties from liability or obligation when an extraordinary event or circumstance beyond their control occurs.

Contract Termination

The legally sanctioned end of a contract's validity, which can occur due to fulfillment, mutual agreement, or breach by one of the parties.