Which of the following statements about supply chain coordination contracts is TRUE?

Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SA
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Which of the following statements about supply chain coordination contracts is TRUE?
A A risk-averse business owner should enter a revenue-sharing rather than a buy-back contract.
B The supplier faces increased overhead costs in a revenue-sharing contract.
C Products with a short peak demand period should enter a buy-back contract rather than a revenue-sharing contract.
D Buy-back contracts usually work more efficiently than revenue-sharing contracts.
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