All of the Following Are Reasons for Suppliers Preferring Long-Term

question 55

Multiple Choice

All of the following are reasons for suppliers preferring long-term contracts except ____.

• A) the supplier receives better scheduling information, which in turn helps the supplier's production area improve efficiency and materials planning
• B) detailed projections of volumes and delivery dates allow the supplier to better budget the flow of funds and investment stemming from the expectation of continued future volume
• C) the supplier's organization lowers unit costs because fixed costs are spread out over the term of the contract
• D) the supplier can pay its workforce higher wages to increase its productivity
• E) All of these choices.

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Definitions:

Business Strategy

A plan of action designed to achieve a specific set of objectives and gain a competitive advantage.

Perception Barrier

An obstacle in communication arising from misunderstandings or differences in viewpoints, backgrounds, or personality.

Attitude Barrier

A psychological or emotional obstacle that hinders effective communication and interaction among individuals in an organization.

Holistic Approach

A strategy that considers all aspects or parts of something as interconnected and equal in importance.