1. The interface between the firm and its suppliers is:
A) distribution.
B) accounting.
C) purchasing
D) production.
E) engineering.
2. If your data fluctuates around a consistent mean, you have a pattern.
A. Level
B. Tend
C. Seasonal
D. Cyclical
E. None of the above
The correct answer and explanation is:
Correct Answers:
- C) Purchasing
- A) Level
Explanation:
1. The Interface Between the Firm and Its Suppliers – Purchasing
The relationship between a firm and its suppliers is primarily managed through purchasing. Purchasing, also known as procurement, is the function responsible for acquiring the raw materials, components, or services needed for production. It serves as the critical link in the supply chain, ensuring that a company receives the right products in the right quantity and at the right price.
Effective purchasing management involves negotiations, supplier evaluation, cost analysis, and contract management. It impacts production efficiency, cost control, and overall supply chain performance. Without a well-structured purchasing process, firms may struggle with supply disruptions, higher costs, and quality inconsistencies.
Other options do not directly define this interface:
- Distribution deals with delivering goods to customers.
- Accounting records financial transactions but does not handle supplier relations.
- Production focuses on transforming raw materials into finished products.
- Engineering designs and develops products and processes.
2. Level Pattern in Data Fluctuations
A level pattern occurs when data fluctuates around a consistent mean, with no evident upward or downward trend. This pattern signifies stability, meaning that there is no long-term increase or decrease in values.
For example, daily temperatures in a tropical climate may remain around 30°C with small variations. Similarly, a retail store’s sales may remain steady over time without a rising or declining trend. The level pattern is commonly found in time series analysis, where past data does not indicate any long-term growth, decline, seasonal shifts, or cyclic behavior.
Other options are incorrect:
- Trend (Tend) suggests a general increase or decrease over time.
- Seasonal fluctuations occur due to predictable time-based influences like holidays or weather.
- Cyclical patterns result from macroeconomic factors, such as recessions and booms.
- None of the above is incorrect since “level” is the right choice.