Question

In this age of increasing specialization, low communication cost, and fast transportation companies are making less and buying more. This means more reliance on supply chains and more risk.

True

False

Material handling cost equation used to determine the cost of the layout for the departments has one summation formula.

True

False

How many suppliers are best for managing risk? A decision tree can be used for selection of suppliers under risk.

True

False

ABC analysis- a method for multiplying on-hand inventory into several classifications based on annual dollar volume.

True

False

Answer 1

1) TRUE - Change is inevitable in modern supply chain management, and risk management is essential to success. Risks evolve and become more prevalent with time.

2) TRUE - this formula multiplies how long it takes them to prepare each item for shipping, by how much you're paying per hour. You can do that with this formula: [Average number of minutes taken to pack an item / 60] x hourly rate.

3) TRUE - A decision tree model is estimated and compared to better comprehend the supplier evaluation process. The rules that are found in the decision tree are applied to the supplier selection structure in order to decrease the number of potential suppliers.

4) TRUE - The ABC analysis provides a mechanism for identifying items that will have a significant impact on overall inventory cost, while also providing a mechanism for identifying different categories of stock that will require different management and controls based on annual dollar volume, the annual demand of each item is then multiplied with its cost per unit.