Decentralization in Multinational Companies May Lead to Lack of Control

question 20

True/False

Decentralization in multinational companies may lead to lack of control.

Understand the differences between pull and push models in supply chain management.

Comprehend the role and impact of JIT (Just-In-Time) systems on inventory management.

Recognize the role of technology in enhancing supply chain efficiency, including the implementation and security of CRM systems.

Grasp the concept and importance of supply chain flows (material, information, and financial).

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Definitions:

Cost of Goods Sold

Direct expenditures associated with producing the items a company offers for sale.

Weighted Average

A calculation that takes into account the differing degrees of importance of the numbers in a data set.

FIFO and LIFO

Inventory valuation methods; FIFO (First In, First Out) assumes that the earliest goods purchased are the first to be sold, while LIFO (Last In, First Out) assumes the reverse.

LIFO Inventory

A method of inventory valuation where the last items added to inventory are the first ones assumed to be sold, typically used to decrease tax liabilities under inflationary conditions.