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110. The correct answer is C. With shorter lead and cycle times, the level of safety stock may be reduced, which leads to savings by reducing inventory levels and obsolescence costs.
Supply chain integration allows the reduction of safety stock levels, which benefits participants by
A. improving the ability to anticipate needs and convey benefits. B. shortening cycle times. C. lowering inventory levels and reducing costs. D. enhancing demand.
111. The correct answer is D. SRM is a methodology to structure and support relationships with suppliers that will assist in reducing procurement and excess inventory costs, supporting a customer-focused business that delivers product/service customization and quality in the desired time frame, and improving processes in an ongoing manner.
SRM structures and supports relationships with suppliers, thereby assisting in which of the following?
A. Focusing on cost of materials and components B. Improving depth of purchased parts knowledge C. Targeting suppliers for cross-selling and up-selling opportunities D. Reducing procurement and excess inventory costs
112. The correct answer is C. Rates, such as number of floor failures, rejected materials, or delays in shipment, are used to compile reports of supplier performance but are not themselves reports. Reporting mechanisms include such tools as scorecards, performance failure alerts (which are online and in real time), and surveys. A certification indicates that a supplier has met criteria but does not report ongoing performance.
An example of a supplier performance reporting mechanism is
A. a certification document. B. a rejected materials rate. C. an automated performance alert. D. a floor failure event rate.
113. The correct answer is B. While businesses may employ customer segmentation, competitive differentiation, and niche marketing to appeal to customers, this strategy describes the creation of lifetime customers.
A business is attempting to create m
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