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What is a common tool for understanding the top spend parts/…

What is a common tool for understanding the top spend parts/suppliers in spend analysis?

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Above is a one-way data table for the TCO comparison between…

Above is a one-way data table for the TCO comparison between buying a Tesla and buying a Chevy. The first row indicates different assumptions for how many miles the owner will drive per year. The second row calculates the TCO for Tesla minus the TCO for Chevy. What does this data table tell us? (more than one may apply)

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Discuss THREE strategic reasons why a company may wish to ke…

Discuss THREE strategic reasons why a company may wish to keep the manufacturing of a product in-house rather than outsource it. 

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Which of the following is a drawback of ABC analysis?

Which of the following is a drawback of ABC analysis?

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Suppose a factory has a learning curve of 80%. It started wi…

Suppose a factory has a learning curve of 80%. It started with a unit cost of $10 for producing 1000 units. What is the unit cost for producing 4000 units?

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In cost modeling, what-if analysis is very useful because mo…

In cost modeling, what-if analysis is very useful because model assumptions could be wrong. 

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Procurement is responsible for a smaller percentage of end-i…

Procurement is responsible for a smaller percentage of end-item value compared to the past.

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An analyst conducted parametric cost modeling and found the…

An analyst conducted parametric cost modeling and found the following formula (all estimates are significant): total cost = 3.5 + 1.2*weight + 2*size – 0.8*(made in Canada). In his model,  (made in Canada) is a binary variable that equals 1 if the product is made in Canada and equals 0 if it is made in the U.S. Based on this analysis, we can see that products made in Canada are more expensive than those made in the U.S. 

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The Pareto Principle refers to the common finding that 80% o…

The Pareto Principle refers to the common finding that 80% of results tend to be produced by around 20% of causes. 

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In the Metalcraft case, varying objectives and incentives st…

In the Metalcraft case, varying objectives and incentives strengthened the procurement process.

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