A Contract That Is Used to Induce Performance Improvement from a Supplier

question 46

Multiple Choice

A contract that is used to induce performance improvement from a supplier along dimensions,such as lead time,where the benefit of improvement accrues primarily to the buyer,whereas the effort for improvement comes primarily from the supplier is a

• A)buyback or returns contract.
• B)revenue-sharing contract.
• C)quantity flexibility contract.
• D)shared savings contract.

---

Definitions:

Strategic Objectives

These are specific, measurable goals set by a business to guide its strategic direction and assist in achieving its overarching purposes.

Internal Processes

The systematic procedures and workflows within an organization that contribute to its operational efficiency and goal achievement.

Strategic Objective

A clearly defined goal that a company aims to achieve in the long term, guiding its direction and business decisions.

Lagging Indicators

Metrics that reflect the results of economic activities, showing changes after the economy has already begun to follow a particular pattern.