The ____ is the logistics concept that recognizes the linkages with logistics systems that result from the interaction of their components.
a. trade-off concept
b. total cost concept
c. systems concept
d. operating concept
Question 2
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 afford to pay its workforce higher wages to increase productivity
e. the supplier can realize lower administrative costs over the term of the contract.
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