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:

Dark Pools

Private financial forums or exchanges for trading securities, not accessible by the investing public, often utilized by large institutional investors to facilitate block trades without impacting the market with their large orders.

Exchanges

Places where securities, commodities, derivatives, and other financial instruments are traded.

Risk Premiums

The additional returns required by investors for taking on higher risk compared to a risk-free investment.

Maturity Risk

Refers to the risk associated with the length of time until the debt securities reach their date of maturity, affecting their price and interest rates.