The profit-leverage effect of supply savings means

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The profit-leverage effect of supply savings means that:

a reduction in money tied up in inventory improves profits.

a reducion in purchase spend increases profit more than an equal sales increase.

eddective price negotiations with a supplier will lower the supplier's profits.

the buyer gains leverage over suppliers when purchases are standardized.

 

efficient and effective supply management processes will increase profits.

Reference no: EM13757250

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