A Company Has Two Inspectors, Each Earning a Salary of $150,000

question 43

Multiple Choice

A company has two inspectors, each earning a salary of $150,000. One inspector works exclusively on inspecting parts received from outside suppliers, while the other spends 40% of her time inspecting parts and 60% of her time inspecting final products. How much labour cost should be assigned to the activity of inspecting parts?

• A) $60,000
• B) $90,000
• C) $210,000
• D) $300,000

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Definitions:

ISCM

Integrated Supply Chain Management; it refers to the comprehensive coordination of end-to-end supply chain processes to optimize efficiency and value creation.

SRM

Supplier Relationship Management is the systematic approach of assessing suppliers' contributions and influence on success, determining tactics to maximize suppliers' performance, and developing the strategic approach for executing these decisions.

Supply Network

The interconnected and complex system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.

Supply Web

A complex network of suppliers, manufacturers, and distributors working together to produce and deliver products to consumers.