The degree of collaboration with supply chain partners depends on their:

The level of resources, effort, and management attention dedicated to collaboration with a supply chain partner should be proportional to that partner's value and impact on the business. A strategic approach, such as supplier segmentation (e.g., the Kraljic matrix), is used to determine this. Partners who supply items of high strategic importance (high profit impact), are critical to key products, or pose a significant supply risk (e.g., single source, volatile market) warrant the deepest levels of collaboration, such as joint planning and strategic partnerships.

B. These are important operational criteria for selecting and evaluating suppliers but do not solely determine the strategic level of collaboration required.
C. Cost optimization is a factor within strategic importance, but this option is less comprehensive than option A, which includes criticality and risk.
D. A partner's size or market strength does not automatically make them a strategic candidate for deep collaboration; their relevance to your business is what matters.

1. Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61(5), 109-117. (The foundational article describing the segmentation of suppliers based on risk and profit impact to determine relationship strategy).

2. APICS CSCP Learning System, Module 2, Section B: "Supply Chain Relationships." This section covers supplier segmentation and the importance of aligning the type of relationship with the supplier's strategic importance.

3. Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2016). Purchasing and Supply Chain Management (6th ed.). Cengage Learning. Chapter 7 discusses supplier evaluation and relationship management, emphasizing segmentation based on criticality and strategic value.