Which of the Following Is NOT an Advantage of the "Few

question 40

Multiple Choice

Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?

• A) suppliers have a learning curve that yields lower transaction and production costs
• B) suppliers are more likely to understand the broad objectives of the end customer
• C) less vulnerable trade secrets
• D) creation of value by allowing suppliers to have economies of scale
• E) suppliers' willingness to provide technological expertise

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Definitions:

Units

A basic measure or quantity of product one of something, often used in the context of production, sales, or inventory.

Inventory Cost Flow

A method used to value and manage inventory, determining the cost of goods sold and ending inventory.

Industry Standards

Established norms or criteria within an industry that act as benchmarks for quality, safety, and performance.

Domestic Operations

Business activities and transactions that occur within a company's home country.