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Acme Electronics Ltd, a manufacturing firm, has signed a contract with Global Metals Inc for the supply of raw materials. The contract includes performance incentives tied to timely delivery and quality standards. However, Acme Electronics Ltd has limited resources to administer performance-incentive agreements. Which one of the following actions best aligns with the principle of offering incentives to critical suppliers?

Offering performance incentives to all Acme

Electronics Ltd's suppliers, irrespective if criticality, to encourage improved

performance across the board and ease administration

Assessing the criticality of each supplier

to Acme Electronics Ltd's success and offering performance incentives

selectively to those deemed critical

100%

Implementing performance incentives only

for critical suppliers who request them and may contribute to Acme Electronics Ltd's

success to streamline administrative processes

Removing performance incentives from Acme Electronics

Ltd's contracts altogether to simplify management and reduce administrative

burden

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