When Buying Materials, the Purchasing Agent for Alco Pillow Manufacturing

question 150

Multiple Choice

When buying materials, the purchasing agent for Alco Pillow Manufacturing Company considers a variety of factors. Which one of the following is least likely to concern this buyer?

• A) Does the quality of the goods meet company specifications?
• B) Does the supplier consistently deliver on time?
• C) Does the supplier also sell to my competitors?
• D) Does the supplier offer the services required?
• E) Does the price meet company budget requirements?

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Definitions:

Cost Focus Strategy

A business approach aimed at being the lowest cost provider in a specific niche or segment.

Competes Worldwide

The capability of an organization or entity to engage and perform in international markets against global competitors.

Low Costs

Strategies or practices aimed at reducing expenses and financial outlays in business operations or production.

Low Prices

The condition of goods or services being offered to consumers at a reduced or competitive cost.