Which of the Following Is NOT a Concern of Suppliers

question 33

Multiple Choice

Which of the following is NOT a concern of suppliers as they prepare to enter into JIT partnerships?

• A)Suppliers feel that they would be less at risk if they contracted with more than one customer.
• B)Suppliers are concerned that customers will present frequent engineering changes with inadequate lead time to deal with them.
• C)Suppliers feel that their processes are suited for larger lot sizes than the customer wants.
• D)Suppliers are concerned that frequent delivery of small quantities is economically prohibitive.
• E)All of the above represent JIT supplier concerns.

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Definitions:

Elastic Demand

A situation in which the demand for a good or service significantly changes in response to a change in price.

Inelastic Demand

A situation where the demand for a product does not change significantly in response to price changes.

Midpoint Method

A technique used in economics for calculating the percentage change between two numbers, considering the average of the two numbers as the base.

Price Elasticity

A measure of the responsiveness of quantity demanded or supplied to changes in price.