A Category Strategy Is a Decision Process Used to Identify

question 52

True/False

A category strategy is a decision process used to identify which suppliers should provide a group of products or services, the form of the contract, the performance measures used to measure supplier performance, and the appropriate level of price, quality, and delivery arrangements that should be negotiated.

---

Definitions:

Producer Surplus

The difference between the amount that producers are willing and able to supply a good for and the amount they actually receive due to market conditions.

Acceptable Price

The price level at which a buyer views the cost of a product or service as reasonable, taking quality and utility into account.

Willing To Pay

Willing to pay is the maximum amount that a consumer is prepared to spend on a good or service.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.