Discuss the four categories of quality costs
Prevention costs are incurred to prevent product or service defects and decrease the number of nonconforming units produced. These costs include items such as quality training programs, quality reporting, quality audits, and quality circles. Raw material vendors are selected with the understanding that all delivered materials meet acceptable quality limits.
Appraisal costs arise from determining whether products are in agreement with their specifications. These costs include inspection of raw material, supervising appraisal activities, and product acceptance or sampling finished batches to see if they meet specifications.
Failure costs make up the other two types of quality costs. Internal failure costs result when the products don't meet specifications and must be reworked or discarded. These costs include scrap, rework, retesting, and design changes. High-quality prevention should eliminate internal failure costs. External failure costs occur when buyers note defects after delivery. These costs can be very high and include lost sales from poor performance of the product, returns due to poor quality, warranties, and product liability.
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Suppose the quantity demanded for a security is BD = 150 ? 0.1b,and the quantity supplied of the security is BS = 50 + 0.1b,where b is the price of the security in dollars. Suppose that the supply curve shifts to BS = 75 + 0.1b.The equilibrium quantity of the security
A. rises by 12.5. B. rises by 2.5. C. falls by 2.5. D. falls by 12.5.
If sales for 20x4 (the base year), 20x5, and 20x6 are $40,000, $31,200, and $49,200, respectively, the index numbers assigned to 20x5 and 20x6, respectively, are
A) 62.4 and 128. B) 156 and 118. C) 128.2 and 133. D) 78 and 123.
When a court rewrites a contract to express the parties' true intentions, what remedy has it used?
A) Quasi-contract B) Reformation C) Substituted contract D) Restitution E) Specific performance
The first basic component of SCM is ____________________. This is the strategic planning portion.
Fill in the blank(s) with the appropriate word(s).