In Product-Based Tailored Sourcing

question 68

Multiple Choice

In product-based tailored sourcing,

• A)low-volume products with uncertain demand are obtained from a flexible source.
• B)high-volume products with less demand uncertainty are obtained from an efficient source.
• C)high-volume products with less demand uncertainty are obtained from a flexible source.
• D)A and B only

---

Definitions:

Short Run

In economics, a timeframe during which the production process has limitations due to fixed resources, leading to constraints on firm adjustments and outputs.

Long Run

The long run is a period in economics during which all factors of production and outputs are variable and can be adjusted, contrary to the fixed factors present in the short run.

Marginal Cost Curve

A visual display illustrating the variation in the expense of manufacturing an extra item of a product as the quantity produced alters.

Peak Efficiency

The state of operation where a system or process achieves its maximum productivity with minimal waste and effort.