Which of the Following Changes Would Increase the Likelihood of a Supply

question 99

Multiple Choice

Which of the following changes would increase the likelihood of a supply chain experiencing the bullwhip effect?

• A) engineering changes to the design of a product
• B) instituting a more accurate materials management information system
• C) closely coordinating promotions with the internal marketing department and suppliers
• D) using a more reliable delivery company

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Definitions:

Backflush Accounting

A simplification of the accounting system by eliminating the accumulation and transfer of product costs by departments (intermediate departmental work in process accounts), but instead pulls the material and conversion costs directly to finished goods.

Work in Process Inventories

Items in various stages of production but not yet completed, representing a component of a manufacturer's inventory.

Lean Practices

A systematic method for waste minimization within a manufacturing system without sacrificing productivity, focusing on adding value and reducing work that is not of value.

Activity Analyses

A process in business accounting and management used to assess the efficiency and productivity of various operations within a company.