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XYZ, Inc. notices that one of its suppliers has been failing to achieve on-time delivery, even though XYZ sends it a 6-month projected order forecast every month. The supplier claims that it takes nine months to receive important raw materials, and that this causes the poor delivery performance. Nevertheless, XYZ must continue purchasing from this supplier, as it is a sole supplier. Given this situation, which of following is the BEST course of action for XYZ to take?
Correct Answer: D
Extending the forecast timeline from six months to one year and requesting the supplier to purchase raw materials based on the projections is the best course of action. This approach aligns the supplier's lead time for raw materials with XYZ's requirements, improving on-time delivery performance. Reference: Supplier relationship management and strategic forecasting.