APICS Certified Supply Chain Professional (CSCP) — Question 79
Production of a company's highest profit items is dependent upon the purchase of high-quality circuit boards. Which level of collaboration should the company develop with their supplier?
Answer options
- A. Pull replenishment
- B. Strategic partnership
- C. Revenue sharing
- D. Vendor-managed inventory (VMI)
Correct answer: B
Explanation
A strategic partnership is the most appropriate level of collaboration as it fosters a long-term relationship focused on mutual goals, ensuring the supplier aligns with the company's quality requirements. The other options, such as pull replenishment, revenue sharing, and vendor-managed inventory, do not provide the same depth of commitment and collaboration necessary for high-quality production.