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A strategic alliance with a single supplier can Question 5 options: increase quality failure costs because competition is not present to drive costs lower decrease

A strategic alliance with a single supplier can
Question 5 options:
increase quality failure costs because competition is not present to drive costs lower
decrease productivity because a variety of delivery systems are not employed
decrease the variability among materials previously sourced from many different suppliers
increase material storage costs because vendor-managed inventory (VMI) requires large safety stocks

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