In JIT Partnerships, Suppliers Have Several Concerns

question 98

Multiple Choice

In JIT partnerships, suppliers have several concerns. Which of the following is NOT such a concern?

• A) desire for diversification
• B) poor customer scheduling
• C) small lot sizes
• D) producing high enough quality levels
• E) customers' infrequent engineering changes

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Definitions:

Expected Return

Expected return is the anticipated profit or loss from an investment, based on the potential outcomes and their probabilities, often used to evaluate investment choices.

Risky Asset

An asset that carries a degree of risk that the value or return could be higher or lower than expected.

Future

Represents the time period that has not occurred yet, often used in the context of predicting economic, financial, or technological developments.

Systematic Risk

The inherent risk that affects the overall market, not diversified away by holding a broad portfolio.