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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

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تم إضافة السؤال من قبل Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG
تاريخ النشر: 2016/03/26
MUBARAK INAYTULLA KHAN
من قبل MUBARAK INAYTULLA KHAN , Procurement Manager , UNIT7 CONTRACTING EST. RIYADH.

E)    Supply management can work collaboratively with suppliers to discover opportunities to lower costs, which ultimately improves the bottom line.

Mohammed  Ashraf
من قبل Mohammed Ashraf , Director of International Business , Saqr Al-Khayala Group

I think the most suitable one among given is option "E" and that is correct answer.

Rafi Shajahan
من قبل Rafi Shajahan , Supply Chain Coordinator , QATAR AIRWAYS

Option B is the answer, Currency fluctuation does not involve

 

 

Vikas Bachhuka
من قبل Vikas Bachhuka , Sales Manager - Tire, Lubs & Batteries , ALI ALGHANIM & SONS AUTOMOTIVE CO.

Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line is not a correct answer to the question.

AMAAN KHAN
من قبل AMAAN KHAN

A dollar saved in materials cost is usually considered a dollar increase in profit, which directly translates into bottom line savings

Sathish Prabhu.V
من قبل Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

Answer is B. A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line

Because other points are true about Supply Management.

Vinod Jetley
من قبل Vinod Jetley , Assistant General Manager , State Bank of India

B)    A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line>>>>>>>>>>>>>>>>>>>

Ghada Eweda
من قبل Ghada Eweda , Medical sales hospital representative , Pfizer pharmaceutical Plc.

The correct answer is 

B)    A Euro increase in sales is equivalent to a Euro decrease in materials cost in impacting the bottom line

Ahmed Mohamed Ayesh Sarkhi
من قبل Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

wait more details from experts

 

VINAY KUMAR GOSWAMI
من قبل VINAY KUMAR GOSWAMI , Partner , 2MI

Ans: B

Currency hedging is part of financial strategy of organisation (e.g. Airline companies buy FUEL futures in advance when the OPEC Oil prices are low or when the parent companies national currency is strong against US$ or Euro.