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:

Job Order Cost

A costing method used to accumulate and assign the costs of labor, materials, and overhead to individual products or jobs.

Rework Costs

Expenses incurred to correct defective products or work processes, ensuring they meet quality standards before reaching the customer.

Just-In-Time

An inventory management strategy where materials and goods are produced or acquired only as needed in the production process, aiming to reduce waste.

Activity-Based Costing

A costing method that assigns manufacturing overhead and indirect costs to products and services based on their use of activities.