Replenishment Orders in Multi-Echelon Supply Chains Should Be

question 13

Multiple Choice

Replenishment orders in multi-echelon supply chains should be

• A)synchronized to increase cycle inventory and order costs.
• B)synchronized to facilitate supplier evaluation and selection.
• C)synchronized to keep cycle inventory and order costs low.
• D)separated to increase cycle inventory and order costs.

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Definitions:

Assembly Department

A part of a manufacturing firm where parts are put together to create finished goods.

Work In Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.

Units Transferred

The quantity of items moved from one stage of production or location to another within a given period.

Step-Down Method

A cost allocation method used in accounting and finance to distribute indirect costs to different departments or products.