Question

Within each cycle of the supply chain, what are the primary objectives of the buyer and the supplier respectively?

A) Buyer: Ensure product availability and achieve economies of scale in ordering. Supplier: Forecast customer orders and reduce the cost of receiving the order.

B) Buyer: Forecast customer orders and reduce the cost of receiving the order. Supplier: Ensure product availability and achieve economies of scale in ordering.

C) Buyer: Reduce the cost of the receiving process. Supplier: Fill the order on time and improve efficiency and accuracy of the order fulfillment process.

D) Buyer: Improve efficiency and accuracy of the order fulfillment process. Supplier: Manage reverse flows to reduce cost and meet environmental objectives.

Answer 1

The primary objectives of the buyer are to ensure product availability and achieve economies of scale in ordering. The primary objectives of the supplier are to forecast customer orders and reduce the cost of receiving the order.

Step-by-step explanation:

In each cycle of the supply chain, the primary objectives of the buyer and the supplier differ.

The primary objectives of the buyer are to ensure product availability and achieve economies of scale in ordering. This means that the buyer wants to make sure that the desired products are always in stock and that they can make larger orders to take advantage of bulk discounts and reduce costs.

On the other hand, the primary objectives of the supplier are to forecast customer orders and reduce the cost of receiving the order. This means that the supplier wants to accurately predict the demand for their products and streamline the process of receiving the orders to minimize costs.