Buyers Are Powerful When

question 30

Multiple Choice

Buyers are powerful when:

• A) there is a threat of forward integration.
• B) they purchase a small proportion of the supplier's output.
• C) switching costs are low.
• D) the buyers' industry is fragmented.

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Definitions:

Quality Standards

Established criteria or benchmarks that describe the characteristics of a product, service, or process to ensure it meets customer and regulatory requirements.

Inventories Classified

The categorization of stock or inventory based on various criteria, such as type, usage rate, or value, to ensure efficient management and control.

Bullwhip Effect

A phenomenon in supply chain management where small fluctuations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, and manufacturer levels.

Supply Chain

The supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer.