Define the bullwhip effect and discuss the advantages of holding inventory far upstream or downstream in the supply chain
What will be an ideal response?
Answer: The bullwhip effect is the phenomenon of a small change in demand downstream in the supply chain causing an extreme change in the inventory position upstream in the supply chain. Inventory increases in cost and value but decreases in flexibility as materials move down the supply chain. There is a trade-off between the advantages of having shelves full of inventory ready to be sold to customers and the lack of flexibility and increased costs attached to that finished goods inventory. Operations and supply chain managers must strike a balance between these two when deciding where to place inventory in the supply chain.
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Which of the following is not one of the four steps of processing transactions?
A. Ensure assets are equal to liabilities. B. Post entry to ledger. C. Identify transactions and source documents. D. Analyze transactions using the accounting equation. E. Record journal entry.
______ employment agencies are privately owned and charge a fee for their services.
A. Public B. Private C. Institutional D. Internal
________ is the coordination of all internal and external activities that affect a company's distribution process
A) Third-party logistics B) Logistics C) Channel management D) Supply chain management E) Transportation management
MacKenzie Company sold $300 of merchandise to a customer who used a Regional Bank credit card. Regional Bank deducts a 1.5% service charge for sales on its credit cards and credits MacKenzie's account immediately when sales are made. The journal entry to record this sale transaction would be:
A. Debit Cash $295.50 and credit Sales $295.50. B. Debit Cash $295.50; debit Credit Card Expense $4.50 and credit Sales $300. C. Debit Cash of $300 and credit Accounts Receivable $300. D. Debit Cash of $300 and credit Sales $300. E. Debit Accounts Receivable $300 and credit Sales $300.