A Disadvantage of the "Few Suppliers" Sourcing Strategy Is

question 22

Multiple Choice

A disadvantage of the "few suppliers" sourcing strategy is:

• A) the risk of not being ready for technological change.
• B) the lack of cost savings for customers and suppliers.
• C) possible violations of the Sherman Antitrust Act.
• D) the high cost of changing partners.
• E) the suppliers are less likely to understand the broad objectives of the procuring firm and the end customer.

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Definitions:

Predictive Validity

An assessment of whether a test measures what it’s intended to measure, based on whether the test score correlates with another relevant criterion measured later.

Validity

The extent to which a method or procedure measures what it is supposed to measure.

Psychometric View

An approach in psychology that focuses on the measurement of mental functions, intelligence, abilities, and attitudes through the use of tests and questionnaires.

Intelligence

The capacity for learning, understanding, and applying knowledge and skills, and the ability to adapt to new situations.