Production of a company’s highest profit items is dependent upon the purchase of high-quality circuit...

For the production of high-profit items that depend on high-quality circuit boards, developing a strategic partnership with the supplier is the most appropriate level of collaboration. A strategic partnership involves a long-term, cooperative relationship where both parties work closely to ensure quality, reliability, and innovation. This type of relationship goes beyond simple transactional interactions and involves shared goals, mutual benefits, and often joint development activities. Options A (Pull replenishment), C (Revenue sharing), and D (Vendor-managed inventory) are useful but do not provide the comprehensive, collaborative approach that a strategic partnership offers.

References:

Chopra, S., & Meindl, P. (2015). Supply Chain Management: Strategy, Planning, and Operation.

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