The Profit-Leverage Effect of Supply Savings Means That

question 24

Multiple Choice

The profit-leverage effect of supply savings means that:

• A)effective price negotiations with a supplier will lower the supplier's profits.
• B)a reduction in purchase spend increases profit more than an equivalent increase in sales.
• C)the buyer gains leverage over suppliers when purchases are increased.
• D)efficient supply management processes will increase profits.
• E)a reduction in money tied up in inventory improves profits.

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Definitions:

Primary Responsibility

The main duty or obligation that an individual or organization is expected to perform or fulfill.

Participative Procedure

A method or process that involves the input and active participation of all stakeholders or members in decision-making or problem-solving.

Formal Procedure

A set of established forms or methods for conducting the affairs of an organization or achieving a specific objective.

Empowerment

The process of giving individuals or groups the authority, resources, and confidence to take control of their own actions and decisions, typically aiming to increase their effectiveness and autonomy.