The major reason supply management can greatly improve a firm’s return on investment (ROI) is: A) the reduction of post ownership costs B) the reduction of downtime costs C) the reduction of quality costs D) the reduction of acquisition cost E) every dollar saved in purchasing is = to a new dollar of profit
SLO-3.1 The major reason supply management can greatly improve a firm’s
| A) the reduction of post ownership costs B) the reduction of downtime costs C) the reduction of quality costs D) the reduction of acquisition cost E) every dollar saved in purchasing is = to a new dollar of profit |
NEWSLO-3.2 Which of the following is generally not true about supply management and the bottom line?
| A) Purchased items account for a large percentage of the cost of goods sold. Hence, a reduction in cost of purchased goods has a major impact on the bottom line B) A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line C) Outsourcing allows firms to focus on their core competencies, which reduced potential for waste, which then can improve the bottom line D) A dollar saved in materials cost is usually considered a dollar increase in profit, which directly translates into bottom line savings E) Supply management can work collaboratively with suppliers to discover opportunities to lower costs, which ultimately improves the bottom line |
As per guidelines only 1 question can be answered at a time.
Supply management is the process of managing the sourcing, purchasing, and procurement of goods and services that a company needs to operate. It involves working with suppliers to ensure the timely delivery of quality goods and services at the best possible cost. Effective supply management includes activities such as supplier evaluation and selection, negotiation of contracts and pricing, purchase order processing, inventory management, and supplier relationship management. The goal of supply management is to ensure that the company has the materials and resources it needs to operate efficiently and effectively, while minimizing costs and managing risks associated with the supply chain. By optimizing supply management practices, a company can improve its operational efficiency, increase its competitiveness, and ultimately achieve better financial performance.
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