A manufacturer of gas-powered motors realigns its supply chain to fit a new business segment. In the past, the
firm focused on customized designs. Now, it wishes to compete in the electric motor market, which is highly
competitive and price-sensitive. Given this situation, which of the following will ensure that the firm has the
proper planning in place?
A firm needs to provide raw materials to accommodate a recent increase in manufacturing production. The
supply manager uses the material forecast from the material requirements planning (MRP) software and the
storage capacity from the warehouse management system (WMS) to forecast the firm's requirements. Which
of the following will impact this forecast MOST significantly?
A buyer is reviewing a quote for a shipment of electronic materials from Europe to Africa. The supplier offers
a reasonable price for the materials and plans to deliver them using its regular shipping service. The terms are
such that the buying company takes possession of the goods once they are loaded onto a boat in Europe.
Which of the following information should be of GREATEST concern to the buyer?
An organization purchases material from several countries. These materials are assembled into products and
sold in several other countries. This firm's product specifications will MOST likely reference
DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The
sales forecast for the ramp-up period is as follows MonthJulAugSepOctNovDecJanFeb
Demand after February is expected to remain at 10,000 units per month for several months, then decrease
gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.
There are only three suppliers capable of providing the specialized component critical to this product. The
production capacities of these suppliers are as follows:
•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total
business
•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total
business
•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total
business
Two of these companies—Supplier X and Supplier Y—are minority businesses.
Given this situation, DEF should contract with
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