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Question 522 - CSCP discussion

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Sourcing via an internet-based trading exchange would be most appropriate for which of the following types of raw materials?

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

Explanation:

According to the APICS CSCP - Supply Chain Management Certification, an internet-based trading exchange is a type of e-sourcing platform that connects buyers and sellers of goods and services online, allowing them to conduct transactions, compare prices, and access market information. Sourcing via an internet-based trading exchange would be most appropriate for inexpensive material for which there are several substitutes, as this type of material has low strategic importance and high supply availability, and can benefit from the lower transaction costs, increased competition, and reduced lead times offered by the online platform.

asked 16/09/2024
Pablo Hilario
38 questions
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