Supply Chain Management Professional (SCMP) · Question
What is the primary purpose of a 'Service Level Agreement' (SLA) in a supply chain contract?
An SLA formally defines the level of service that a customer can expect from a supplier, detailing metrics, responsibilities, and penalties.
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Question: What is the primary purpose of a 'Service Level Agreement' (SLA) in a supply chain contract?
Answer options: ✅ To define the quality, availability, and responsibilities of services provided
- To outline the payment terms and conditions for goods delivered
- To specify the technical specifications of manufactured products
- To establish intellectual property rights between parties
Correct answer: To define the quality, availability, and responsibilities of services provided
Explanation: An SLA formally defines the level of service that a customer can expect from a supplier, detailing metrics, responsibilities, and penalties.
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