Question

a sourcing strategy in which two suppliers are used for the same purchased product or service is _____

cross sourcing

dual sourcing

contingency sourcing

multisourcing

an item that is expensive, complex, and has few qualified suppliers can be described as having ____

high value potential and high complexity

high value potential and low complexity

low value potential and high complexity

low value potential and low complexity

a company using portfolio analysis decides to form partnerships with product A's suppliers; product A falls in the _______

bottleneck quadrant

critical quadrant

leverage quadrant

routine quadrant

if profit margin is 8.9%, every dollar saved in purchasing ______

increases pretax profit by $0.089

decreases pretax profit by $0.089

increaaes pretax profit by $1

decreases pretax profit by $1

Answer 1

1. Using two suppliers for purchasing a single product is known as dual sourcing. Option 2 is right.

2. An expensive and complex item that needs qualified and competent suppliers is known as high potential value and high complexity item Option 1 is right.

3. The portfolio analysis is being used to form partnerships with suppliers for item A, which falls in critical quandrant, as the component must be high risk and high value item, for which aa partnership is being formed. Option b is right

4.Ever dollar saved in purchasing reduces cost of goods sold by a dollar, hence increases  the revenue by $1. This saving reflects in the pretax profit by same amount, i.e. a dollar.

Option c is right