Part 1In the portfolio model, what items are characterized by low profit impact and low supply risk?Part 2
A. leverage items B. routine items C. critical items D. bottleneck items

Question

Part 1In the portfolio​ model, what items are characterized by low profit impact and low supply​ risk?Part 2
A. leverage items B. routine items C. critical items D. bottleneck items

BlackTom AI · Accepted Answer

Question restatement: In the portfolio model, what items are characterized by low profit impact and low supply risk? Part 2: A. leverage items B. routine items C. critical items D. bottleneck items

Option A: leverage items. These items typically have high profit impact and low supply risk, meaning they can affect profits significantly but their supply is reliable. Describing them as low profit impact would misclassify their strategic importance, making this option incorrect.

Option B: routine items. Routine items are generally low in both profit impact and supply risk. They are the everyday elements that run smoothly with few disruptions and do not contribute heavily to overall profitability, which aligns with the description in the question. This makes the option plausible and is why it is considered correct in this context.

Option C: critical items. Critical items usually exhibit high profit impact and high supply risk because they are essential to operations but may be scarce or hard to source. Labeling them as low profit impact and low supply risk contradicts their typical characteristics, so this option is incorrect.

Option D: bottleneck items. Bottleneck items tend to have low supply risk but high impact on the process, or sometimes high risk in supply, depending on context, because they constrain throughput. Calling them low profit impact and low supply risk would ignore their role in limiting production or service delivery, rendering this option incorrect.

In summary, the description in the question aligns with routine items as the ones with both low profit impact and low supply risk, while the other options describe categories with higher impact or higher risk in some dimension, making them inconsistent with the given characterization.

Homework:Assignment #7

Part 1In the portfolio model, what items are characterized by low profit impact and low supply risk?Part 2 A. leverage items B. routine items C. critical items D. bottleneck items

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