Consider Two Less-Than-Desirable Options

question 47

Multiple Choice

Consider two less-than-desirable options.In the first you are driving 30 mph and crash head-on into an identical car also going 30 mph.In the second option you are driving 30 mph and crash head-on into a stationary brick wall.In neither case does your car bounce off the thing it hits,and the collision time is the same in both cases.Which of these two situations would result in the greatest impact force?

• A) hitting the other car
• B) hitting the brick wall
• C) The force would be the same in both cases.
• D) We cannot answer this question without more information.
• E) None of these is true.

Understand the concept and implications of the bullwhip effect within supply chains.

Recognize the impact of lack of coordination on supply chain performance.

Identify how information distortion can exacerbate supply chain issues.

Understand strategies for minimizing the bullwhip effect through operational improvements and information sharing.

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Definitions:

F.O.B Shipping Point

F.O.B Shipping Point (Free on Board Shipping Point) is a shipping term indicating that the buyer assumes ownership and risk of the goods being shipped as soon as they leave the seller's premises.

Perpetual Inventory Method

An accounting method that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

General Journal Entry

A general journal entry is a record in the general journal that is used to document business transactions according to the double-entry bookkeeping system.

Perpetual Inventory Method

The perpetual inventory method continuously updates inventory records and cost of goods sold every time a transaction occurs.