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Question 11 - CPIM-Part-2 discussion

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When procuring for innovative products, the focus should be on:

A.
unit cost.
Answers
A.
unit cost.
B.
total landed cost.
Answers
B.
total landed cost.
C.
lead times.
Answers
C.
lead times.
D.
lot sizes.
Answers
D.
lot sizes.
Suggested answer: B

Explanation:

When procuring for innovative products, the focus should be on the total landed cost, which is the sum of all costs associated with making and delivering products to the point where they are used. This includes not only the unit cost, but also the transportation, handling, inventory, taxes, duties, and other fees associated with the procurement process. By focusing on the total landed cost, procurement can evaluate the true value of innovative products and compare them with alternative solutions. Focusing on unit cost alone may overlook the potential benefits of innovation, such as improved quality, performance, or sustainability. Lead times and lot sizes are also important factors to consider, but they are not the main focus when procuring for innovation.Reference: CPIM Part 2 Exam Content Manual, Domain 4: Plan and Manage Supply, Section A: Supply Management Concepts and Approaches, Subsection 2: Procurement Strategies and Techniques, Page 17.

asked 16/09/2024
Jose Castillo
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