Many manufacturers allow their suppliers access to their sales information and automatically authorize purchase of materials to replace those used in the products that have been sold.In these organizations,sales are based on:
A)Profit margins.
B)Extrinsic rewards.
C)Outsourcing.
D)Derived demand.

Question

Quizplus · Accepted Answer

The described process of allowing suppliers access to sales information and authorizing purchase of materials based on the products sold is an example of derived demand. The demand for materials is directly derived from the demand for the final products. Profit margins, extrinsic rewards, and outsourcing may all be factors in these organizations, but they are not the basis of sales.

Many Manufacturers Allow Their Suppliers Access to Their Sales Information