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Acme Electronics Ltd , a manufacturing firm, has signed a contract with Global Metals Inc for the supply of raw materials. The contract includes performance
Acme Electronics Ltd a manufacturing firm, has signed a contract with Global Metals Inc for the supply of raw materials. The contract includes performance incentives tied to timely delivery and quality standards. However, Acme Electronics Ltd has limited resources to administer performanceincentive agreements.
What action best aligns with the principle of offering incentives to critical suppliers?
Removing performance incentives from Acme Electronics Ltds contracts altogether to simplify management and reduce administrative burden.
Offering performance incentives to all Acme Electronics Ltds suppliers, irrespective if criticality, to encourage improved performance across the board and ease administration.
Assessing the criticality of each supplier to Acme Electronics Ltds success and offering performance incentives selectively to those deemed critical.
Implementing performance incentives only for critical suppliers who request them and may contribute to Acme Electronics Ltds success to streamline administrative processes.
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