Question 1
What type of negotiating strategy requires the supplier to open its books to the purchasers?
◦ cost-based price model
◦ competitive bidding
◦ price-based model
◦ fair value price model
◦ market-based price model
Question 2
Which of the following statements is true regarding the leverage of supply-chain savings?
◦ Supply chain leverage is about the same for all industries.
◦ Supply chain savings have no impact on net margin.
◦ Supply chain leverage depends only upon the percent of sales spent in the supply chain.
◦ Supply chain savings exert more leverage as the firm's purchases are a smaller percent of sales.
◦ Supply chain savings exert more leverage as the firm has a lower net profit margin.
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