ISM Supply Management Core Exam CORE Question # 24 Topic 3 Discussion

ISM Supply Management Core Exam CORE Question # 24 Topic 3 Discussion

CORE Exam Topic 3 Question 24 Discussion:
Question #: 24
Topic #: 3

A manufacturing company signs a cost-reimbursable contract with a new customer that needs a large volume of its product manufactured in a short period of time. The product is difficult and time consuming to fabricate. The contract provides generous flexibility for cost but has severe consequences if the deadline is missed. To ensure the timely completion of the contract, the manufacturer plans to negotiate with a lower-tier supplier for a critical sub-component.

Given this situation, which of the following negotiation objectives is MOST closely aligned with the interests of the manufacturing firm?


A.

Expediting fabrication and delivery of the sub-component


B.

Implementing enhanced quality inspections prior to shipment


C.

Achieving a 10% reduction in price


D.

Providing a 5% discount for prompt payment of invoices


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