The Process of Supplier Categorization Is Important for a Number

question 25

Multiple Choice

The process of supplier categorization is important for a number of reasons. This process forces the buying organization to communicate cross-functionally to develop some system for ranking the suppliers. Two main items that are considered in the categorization process are: * the __________ of the contract with an individual supplier and
* the __________________ to the buying firm's business strategy.

• A) length / performance
• B) cost / just-in-time delivery
• C) dollar amount / competitiveness
• D) dollar amount / critically of the supplier
• E) dates / critically of the contract

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Definitions:

Resource Suppliers

Entities or individuals that provide the essential inputs or resources needed for production, including labor, capital, materials, and technology.

Expected Price Level

The anticipated average price of goods and services in the economy at a future point in time.

Actual Price Level

The current general level of prices for goods and services in an economy, which can affect purchasing power and inflation.

Short-Run Aggregate Supply

The total amount of goods and services that producers in an economy are willing and able to supply at a given overall price level in a short period.