When a Supplier Creates a Restrictive Agreement That Prohibits Intermediaries

question 57

Multiple Choice

When a supplier creates a restrictive agreement that prohibits intermediaries that handle its product from selling competing firms' products,_______________ has occurred.

• A)Just-in-time (JIT) inventory control system
• B)Materials requirement planning (MRP)
• C)Exclusive dealing
• D)Exclusive territory
• E)Tying contract

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Definitions:

Periodic Review Policies

Inventory management techniques that involve reviewing and adjusting inventory levels at fixed intervals to ensure adequate supply.

Safety Inventory

Extra inventory held as a buffer against uncertainty in demand or supply, to ensure service levels.

Product Availability

The extent to which products are in stock and available to be purchased by consumers.

Order Up To Level

A replenishment strategy used in inventory management where stock is ordered up to a predetermined level whenever the inventory falls below a certain point.