Local Optimization Is a Supply-Chain Complication Best Described As

question 41

Multiple Choice

Local optimization is a supply-chain complication best described as:

• A) optimizing one's local area without full knowledge of supply chain needs.
• B) obtaining very high production efficiency in a decentralized supply chain.
• C) the prerequisite of global optimization.
• D) the result of supply chains built on suppliers with compatible corporate cultures.
• E) the opposite of the bullwhip effect.

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Definitions:

Equipment Undervalued

A situation where the recorded book value of equipment on the financial statements is less than its current market value.

Partial Equity Method

An accounting approach used for investments where the investor has significant influence but not full control, recognizing income based on the proportionate share of the investee's earnings.

Investment

Allocating resources, usually money, with the expectation of generating an income or profit.

Equipment Undervalued

Situations in which equipment's book value on financial statements is less than its current market value or replacement cost.