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NEW QUESTION # 114
Which of the following describes a market structure where there are few sellers and many buyers and where price is controlled by either an industry leader or a cartel?
Answer: C
Explanation:
An oligopoly is a market structure where a few sellers dominate the market and many buyers ex-ist. In such a market, prices and output levels are often controlled by the leading firms or through collusion, such as forming a cartel. These firms hold significant market power, which allows them to influence prices and other market factors. Oligopolies are common in industries where high en-try barriers exist, such as telecommunications, airlines, and oil and gas. References:
*Perloff, J. M. (2016). Microeconomics: Theory and Applications with Calculus. Pearson.
*Mankiw, N. G. (2014). Principles of Microeconomics. Cengage Learning.
NEW QUESTION # 115
Over the past 90 days, a buying company's manufacturing engineers have reported an increase in the number of defective parts received from a key supplier. The engineers report that there are three different types of defects occurring, and that they are all being discovered during production. The supplier states that it does not have enough resources to assess the root cause of the three types of defects all at one time. Which of the following should the buying firm do in this instance?
Answer: A
Explanation:
Working with engineering to assess the impact of each defect type on customers helps prioritize corrective actions effectively. Addressing the defect with the highest customer impact first ensures that resources are focused on the most critical issues, improving product quality and customer satisfaction.
NEW QUESTION # 116
A large retailer and one of its suppliers establish a process to combine intelligence from both organizations in order to improve product availability while reducing inventory, transportation, and logistics costs. This process is known as which of the following?
Answer: A
Explanation:
The process described is Collaborative Planning, Forecasting and Replenishment (CPFR), which involves both the retailer and supplier working together to improve product availability and reduce costs associated with inventory, transportation, and logistics. References: CPFR is a widely adopted strategy in supply chain management to enhance collaboration and optimize the supply chain.
NEW QUESTION # 117
Which of the following BEST explains why forecast accuracy is important in contracts with suppliers?
Answer: A
Explanation:
Accurate forecasts enable suppliers to optimize production and inventory levels, reducing costs and enhancing supply reliability. This mutual benefit strengthens supplier relationships. Reference: Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management.
NEW QUESTION # 118
A manufacturer has historically ordered fasteners utilizing monthly fixed order quantities. The firm wishes to explore the feasibility of using economic order quantity (EOQ), and determines that the EOQ is less than the supplier's quoted price break. Which of the following is the BEST course of action for the firm to take?
Answer: D
Explanation:
Comparing the price break to the carrying cost of buying at the economic order quantity is essential. This analysis will help the firm determine the most cost-effective purchasing strategy by weighing the benefits of the price break against the costs associated with holding additional inventory. Reference: Inventory management and cost analysis.
NEW QUESTION # 119
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