Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 performance-incentive agreements.
What action best aligns with the principle of offering incentives to critical suppliers?
Removing performance incentives from Acme Electronics Ltd's contracts altogether to simplify management and reduce administrative burden.
Offering performance incentives to all Acme Electronics Ltd's suppliers, irrespective if criticality, to encourage improved performance across the board and ease administration.
Assessing the criticality of each supplier to Acme Electronics Ltd's 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 Ltd's success to streamline administrative processes.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials of Management

Authors: Andrew J. DuBrin

9th Edition

538478233, 2900538478235, 978-0538478236

More Books

Students also viewed these General Management questions