To Estimate Costs for Large Network Purchases, Organizations Often

question 19

Multiple Choice

To estimate costs for large network purchases, organizations often:

• A)purchase all network purchases 'off the shelf'
• B)obtain 'book value' information for the existing network from the accounting department
• C)ask other users what they paid for their network bought in the past
• D)multiply old network costs by a factor of 3
• E)issue an RFP to vendors

Understand the implications of different supply sourcing strategies on supply chain flexibility and cost.

Recognize the benefits of quick response and tailored sourcing in supply chain management.

Evaluate the effects of forecast accuracy and lead time on supply chain performance.

Understand the relationship between forecast error (standard deviation) and its impact on expected profit and understock.