Acme has had problems with forecasting for an important chipset that is used in several of its measuring products. These problems have resulted in excess inventory and an increase in Working Capital Costs, Obsolescence, and Holding Costs. To mitigate this, Acme decided to implement a Portfolio Contract strategy for the procurement of this chipset, as follows: Base Commitment: 50% of potential volume Option Level: 30% of potential volume Spot Market purchase: 20% of potential volume However, following several months of this arrangement, Acme now feels more confident in its forecasting and demand estimating capability. Acme now believes that it can reduce its supply costs. As a result, a good strategy for Acme would be to: Increase its percentage for Spot Market Purchase Increase its Option Level with suppliers Increase its Base Commitment Level Reduce its Base Commitment level