A company develops annual forecasts for key products and enters into annual contracts with key suppliers based on the forecasts. Which of the following benefits would the company most likely receive from this approach?

Question

Quizplus · Accepted Answer

By entering into annual contracts based on forecasts, the company can provide suppliers with more certainty and stability regarding demand, allowing suppliers to offer lower prices in return. Shorter delivery lead times, improved service, and higher-quality products may also be potential benefits of this approach, but they are not directly mentioned in the scenario.

A Company Develops Annual Forecasts for Key Products and Enters