Which of the Following Is Not a Strategic Level Purchasing

question 55

Multiple Choice

Which of the following is not a strategic level purchasing decision? 

• A) Decisions to outsource activities which are currently executed by the company to outside suppliers. 
• B) Agreement on corporate or annual supplier framework agreements. 
• C) Decisions related to supplier and sourcing strategies based on multiple versus single sourcing. 
• D) Major investment decisions.

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Definitions:

Expected Utility

A theory in economics that calculates the utility expected from a risky or uncertain choice, aiming to maximize satisfaction.

Risk-averse

A characteristic of individuals who prefer to avoid taking risks and are likely to choose options that minimize uncertainty.

Probability

The determination of the possibility that an event will happen, quantified between 0 and 1.

Expected Utility

A theory in economics that calculates the utility of an entity based on the probabilistic outcomes of its choices.