INTE Exam Dumps : Supply Management Integration

A supply manager for a U.S. firm is tasked with negotiating domestic shipping terms. The terms must ensure that the supplier has liability for any damaged products and is responsible for filing any claims with the shipper. The terms must also allow the buying firm to pay the shipper directly for shipping costs. Which of the following will BEST accomplish this objective?

DEF, Inc. is in the ramp-up phase of a unique medical device. The device has a two-year life expectancy. The sales forecast for the ramp-up period is as follows:

MonthJulAugSepOctNovDecJanFeb

Unit Sales1001502006001,4002,2004,00010,000

Demand after February is expected to remain at 10,000 units per month for several months, then decrease gradually. The units are small, and thus maintaining an inventory of up to 10,000 units is possible.

There are only three suppliers capable of providing the specialized component critical to this product. The production capacities of these suppliers are as follows:

•Supplier X has a capacity of 500 units per month at a cost of S20 per unit, representing 80% of its total business

•Supplier Y has a capacity of 2,000 units per month at a cost of S2O.5O per unit, representing 50% of its total business

•Supplier Z has a capacity of 20,000 units per month at a cost of $20.70 per unit, representing 10% of its total business

Two of these companies—Supplier X and Supplier Y—are minority businesses.

Given this situation, DEF should contract with

A firm hires a contractor to build a new warehouse. During construction, the firm decides it wants to modify the contract to add an office area to the facility. Which of the following is the BEST course of action for the firm to take in this situation?