The ultimate goal of a supply contract is to achieve which of the following outcomes?
A.
Minimize the risk of stockouts for the buyer.
B.
Reduce the risk of excess inventory for the supplier.
C.
Share risk and increase profits for both entities.
D.
Decrease quality issues and product returns.
The Answer Is:
C
This question includes an explanation.
Explanation:
The ultimate goal of a supply contract is to achieve a win-win outcome for both the buyer and the supplier, where they share the risk and increase the profits of their business relationship12. A supply contract can help achieve this goal by establishing clear and fair terms and conditions that align the incentives, expectations, and responsibilities of both parties34. A supply contract can also help foster trust, collaboration, and innovation between the buyer and the supplier, which can enhance their competitive advantage and customer satisfaction .
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