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Course 19458

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A firm has DIO = 40 days, DSO = 30 days, and DPO = 50 days. It is considering two policies:

Policy 1: reduce inventory by 10 days through better forecasting. 

Policy 2: increase payment delay to suppliers by 10 days through buyer power.

Which statement is most consistent with the lecture?

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A buyer negotiates an extension of supplier payment terms from 30 days to 60 days, while inventory and customer payment remain unchanged. According to the lecture, which statement is MOST accurate?

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A firm serves the UK and France through one central warehouse plus local packaging sites. Demand in both countries is fairly predictable, but the firm is worried mainly about disruptions such as transport failures to one country or shutdowns at a local packaging site. According to the lecture, which inventory policy is most appropriate?
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A company redesigns its network so that Plant 1 and Plant 2 can each produce both Product A and Product B instead of being dedicated to only one product each. At the same time, demand for A and B tends to rise and fall together because both are driven by the same seasonal promotion. Which statement is most consistent with the lecture?
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A wholesaler observes that customer demand is fairly stable, but its own orders to the distributor are highly erratic. Investigation shows that the wholesaler places large infrequent orders to exploit scale economies, while the manufacturer also runs temporary price promotions. Which pair best explains the distortion?
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In a car assembly line, a worker notices that a door is not aligned properly. The worker pulls a cord, the line stops, and the defect is investigated immediately before more cars continue through the system. Which lean method is being used?
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Which of the following is a key risk of outsourcing highlighted in the lecture?
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Which of the following best explains why demand aggregation reduces uncertainty in outsourcing?
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The figure below shows two positions in the product–process space, where the horizontal axis represents variety, and the vertical axis represents cost efficiency.

(H: High – L: Low)

Which of the following options correctly matches an operation type to Point A and Point B, respectively?

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According to the relationship between process competencies and product attributes, which of the following statements is correct?
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