An international consumer products manufacturer requires all of its suppliers to provide the lowest possible cost and to adhere to a just-in-time inventory system.Wholesalers and manufacturers generally yield to the authority of this large manufacturer.This consumer products manufacturer exercises channel power.

Question

Quizplus · Accepted Answer

The use of a just-in-time inventory system and a demand for the lowest possible cost indicates that the consumer products manufacturer has significant power over its suppliers, suggesting the use of channel power.

An International Consumer Products Manufacturer Requires All of Its Suppliers