In the sourcing/purchasing design matrix, there are three variables: contract duration, transaction costs and specificity (assume levels as short, medium and long for contract duration and for the rest, low, medium and high). vendor managed inventory belongs to:
a. long contract duration, high transaction costs and low specificity.
b. short contract duration, high transaction costs and low specificity.
c. long contract duration, low transaction costs and low specificity.
d. long contract duration, high transaction costs and high specificity.
e. long contract duration, low transaction costs and high specificity.

Option E, Vendor managed inventory belongs to long contract duration, low transaction costs, high specificity .

Explanation:

A template matrix is a vector of the predictor variables of a set of objects, often known as the model matrix, which is often defined by X. Every row describes a single object, with subsequent columns that suit the variables and their unique values. The template matrix is used in some statistical models,  

E. G. the standard linear sequence. It may include predictor variables (one and zero), or it could contain values of constant variables; imply group identity in an ANOVA.

The Vendor Managed Inventory (VMI) is a business strategy in which the purchaser of a product sources a manufacturer of that product with details and the seller accepts responsibility for the management of a negotiated stock of the item, typically in position where the customer absorbs.

answer; commerce clearing house;