The profit-leverage effect of supply savings means that: a. effective price negotiations with a supplier will lower the supplier's profits. b. a percentage increase in reduction of purchase spend results a percentage increase of the profit. c.the buyer gains leverage over suppliers when purchases are increased. d.a reduction in money tied up in inventory improves profits.

The profit-leverage effect of supply savings means that: a. effective price negotiations with a supplier will lower the supplier's profits. b. a percentage increase in reduction of purchase spend results a percentage increase of the profit. c.the buyer gains leverage over suppliers when purchases are increased. d.a reduction in money tied up in inventory improves profits.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter2: The Purchasing Process

Section: Chapter Questions

Problem 1GPE

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