SCM 453 Quiz4 column2

monopoly

In a/an _____ market, there is only one supplier who can provide a given product or service.

seller's market

In a/an _____, demand exceeds supply, and prices generally increase.

buyer's market

In a/an _____, supply exceeds demand, and prices generally move downward.

fitness for purpose

In cost modeling, _____ refers to the cost model's ability to provide output necessary to assist in decision making.

auditability

In cost modeling, _____ refers to the integrity and transparency of the cost model created.

value stream map

The _____ provides a high level view of the supply chain.

critical product

A/An _____ is a high-value product or service where relatively few suppliers exist.

unique product

A/An _____ is a low-value product or service with few available suppliers.

cost driver

A/An _____ is a specific dimension of cost that is attributable for a significant portion of the overall pattern of cost increases or reduction.

cash discount

A/An _____ is an incentive to pay invoices promptly.

acquisition costs

In TCO, _____ include all the costs associated with bringing the product, service, or capital equipment to the customer's location.

reverse price analysis

In _____, essentially means breaking down the price into its components of material, labor, overhead, and profit.

oligopoly

In a/an _____ market, there are only a few large competitors, and the market and pricing strategies of one competitor directly influence others within the industry.

perfect competition

In a/an _____ market, there exist identical products with minimal barriers for new suppliers to enter the market.

market skimming model

In the _____, prices are set to achieve a high profit on each unit by selling to supply managers who are willing to pay a higher price because of a lack of supply management sophistication or who are willing to pay for products or services of perceived higher value.

market-share model

In the _____, pricing is based on the assumption that long-run profitability depends on the market share obtained by the supplier.

rate-of-return pricing model

In the _____, the desired profit is added to the estimated cost.

price volume model

In the _____, the supplier analyzes the market to find the combination of price per unit and quantity of sales that maximizes its profit on the assumption that (1) lowering the price will result in more units being sold, and (2) greater volume will spread the indirect cost over more units, therefore maintaining or even increasing the profit as it relates to price.

margin pricing model

In the _____, the supplier establishes a price that will provide a profit margin that is a predetermined percentage of the quoted price.

cost markup pricing model

In the _____, the supplier simply takes its estimate of costs and adds a markup percentage to obtain the desired profit.

revenue pricing model

In the _____, the supplier's emphasis is on obtaining sufficient current revenue to pay for operating cost rather than on profit.

competition pricing model

The _____ focuses on pricing actions or reactions to pricing proposals offered or expected to be offered by the supplier's competitors.

PPI

The _____ is maintained by the Bureau of Labor Statistics and tracks material price movements from quarter to quarter.

promotional pricing model

The _____ presents pricing for individual products and services that is set to enhance the sales of the overall product line rather than to ensure the profitability of each product.

sensitivity analysis

_____ evaluates the impact on a supplier of different mixes of purchase volumes and target purchase prices.

break-even analysis

_____ includes both cost and revenue data for an item to identify the point where revenue equals cost, and the expected profit or loss at different production volumes.

total cost of ownership

_____ is defined as the present value of all costs associated with a product, service, or capital equipment that are incurred over its expected life.