Value Central Has a Partnership of High Trust and Commitment

question 21

Multiple Choice

Value Central has a partnership of high trust and commitment with certain suppliers and gives them access to its sophisticated and detailed daily, individual store-based sales data. In exchange, those suppliers are responsible for managing Value Central's inventory of their products. This relationship is best described as ________.

• A) basic buying and selling
• B) contractual transaction
• C) collaborative
• D) customer supply
• E) customer is king

---

Definitions:

Direct Materials

Primary components used in the manufacturing of products, which are directly traceable to the finished product.

Electricity

A form of energy resulting from the existence of charged particles, widely used for lighting, power, and other applications.

Assembly Worker

An individual employed in the manufacturing sector tasked with putting together components of products on an assembly line.

Variable Cost Per Unit

The cost that varies with each unit produced or sold, not including fixed costs.