Asked by Shahd Ajlani on Jul 07, 2024
Verified
Many suppliers feel that having a variety of customers is better than being tied to long-term contracts with one customer.
Long-term Contracts
Agreements between two or more parties for the supply of goods or services over an extended period.
Variety
The presence of multiple different items or options within a collection, offering a selection to choose from.
- Comprehend the dynamics of vendor partnerships and tactics in Just-In-Time systems.
Verified Answer
MA
Muhammad AimanJul 10, 2024
Final Answer :
True
Explanation :
Having a variety of customers allows suppliers to diversify their revenue streams and decrease their reliance on one customer, which carries the risk of losing all business if that customer were to terminate their contract. This also allows suppliers to be more adaptable to changes in demand and market conditions.
Learning Objectives
- Comprehend the dynamics of vendor partnerships and tactics in Just-In-Time systems.