ExamGecko
Question list
Search
Search

List of questions

Search

Question 191 - CSCP discussion

Report
Export

Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

A.
Expensive material that is critical to the finished good
Answers
A.
Expensive material that is critical to the finished good
B.
Expensive material for which there are several substitutes
Answers
B.
Expensive material for which there are several substitutes
C.
Inexpensive material that is critical to the finished good
Answers
C.
Inexpensive material that is critical to the finished good
D.
Inexpensive material for which there are many sources
Answers
D.
Inexpensive material for which there are many sources
Suggested answer: D

Explanation:

The most appropriate type of raw materials to source via an Internet-based trading exchange is inexpensive material for which there are many sources. This involves:

Broad Supplier Base: When there are many suppliers available, an Internet-based trading exchange can provide a platform to compare prices and availability easily. 2. Low Cost: For inexpensive materials, the cost savings from competitive bidding and efficient procurement processes outweigh the transaction costs associated with online exchanges.

Commoditization: Materials that are widely available and standardized are well-suited for trading exchanges, as the quality and specifications are generally consistent across suppliers.

Efficiency: Internet-based trading exchanges streamline the procurement process, reducing the time and effort required to source materials and potentially lowering procurement costs.

'E-Procurement: From Strategy to Implementation' by Dale Neef

APICS, 'Strategic Sourcing in Supply Chain Management'

asked 16/09/2024
Salah Dabwan
25 questions
User
Your answer:
0 comments
Sorted by

Leave a comment first