SCM - Sourcing & Pricing Decisions

What is the primary objective of sourcing ?

• Maximizing profits

• Selecting suppliers for uninterrupted production

• Minimizing production costs

• Expanding market reach

Sourcing involves:

• Selling products to customers

• Selecting suppliers of materials for production

• Advertising products to target audience

• Managing human resources

Which factor is NOT considered in strategic sourcing ?

• Cost

• Quality

• Supplier location

• Customer preferences

Why is strategic sourcing important for businesses ?

• To increase advertising budget

• To improve product design

• To ensure uninterrupted production

• To decrease employee turnover

Which of the following is a benefit of effective sourcing ?

• Increased production downtime

• Higher production costs

• Enhanced product quality

• Decreased customer satisfaction

What does uninterrupted production mean in the context of sourcing ?

• Halting production for maintenance

• Consistent flow of materials for production

• Frequent changes in product design

• Reducing workforce

Strategic goals in sourcing are aligned with :

• Marketing tactics

• Production targets

• Customer feedback

• Employee training

In sourcing, supplier selection is based on :

• Random choice

• Business's strategic goals

• Employee preferences

• Price fluctuations

Which phase of sourcing involves evaluating potential suppliers ?

• Planning

• Selection

• Negotiation

• Implementation

Which type of sourcing focuses on finding suppliers who offer the lowest cost possible ?

• Strategic sourcing

• Tactical sourcing

• Cost-based sourcing

• Low-cost country sourcing