Suppliers Can Gain Power from a Number of Sources in the Buyer

question 7

Multiple Choice

Suppliers can gain power from a number of sources in the buyer / supplier relationship. When a buyer has access to knowledge, information and skills desired by the supplier, this is called a(n) ________ source of power.

• A) expert
• B) reward
• C) referent
• D) coercive

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Definitions:

Make to Stock

A production strategy where goods are produced based on anticipated demand and stocked for future sales, without specific customer orders.

Push Manufacturing

A production strategy where goods are produced in anticipation of customer demand, based on forecasts, leading to potential stockpiling or inventory costs.

Actual Customer Orders

Purchase requests made by customers for goods or services, representing real demand rather than forecasted sales.

Push Manufacturing

A type of production strategy where products are made in anticipation of customer demand based on forecasts, leading to stockpiling.