A production material that lies on the high end of the value/cost scale and the low end of the criticality scale is categorized as a general item. True or False?
Understand the Problem
The question is asking whether a production material with high value/cost but low criticality is classified as a "general item". This requires understanding the definitions of these terms within a supply chain or operations management context.
Answer
True
True. According to the provided context, a production material with high value/cost and low criticality is classified as a general item.
Answer for screen readers
True. According to the provided context, a production material with high value/cost and low criticality is classified as a general item.
More Information
Understanding how to categorize production materials based on their value/cost and criticality is important for supply chain management. This helps in making informed sourcing and procurement decisions.
Tips
It's easy to confuse the classifications. Remember high/high is 'strategic,' while high/low is 'general.'
Sources
- scm ch15 flashcards - Quizlet - quizlet.com
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