Companies Use IT Systems to Manage the Supply Chain Which

question 16

True/False

Companies use IT systems to manage the supply chain which starts with the acquisition of raw materials or the procurement purchase) of products and proceeds through manufacture, transport, and delivery-and the disposal or recycling of products.

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Definitions:

Idle Capacity

Unused or underused production capability within a manufacturing facility, often resulting in inefficiency and lost potential revenue.

Full (Absorption) Cost

The total cost of a product that includes all direct and indirect costs, such as raw materials, labor, and overhead, required for its production.

Transfer Price

The price charged for goods or services transferred between divisions or units of the same company.

Additional Parts

Extra components or pieces supplied beyond the original requirements, often used for repairs, replacements, or enhancements.