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SUPPLY STRATEGY

JJOEL9y ago
Good day tutor here is a question i came across also in the BPP question but dnt have idea and never came across it in our class note Z plc sources a range of complex component from supplier which are critical to the quality of Z plc's final product. Any disruption to the supply of these components will mean that Z plc cannot maintain its services levels to its own customers. In the purchasing of these component \s, which two of the following are least likely to be a component of Z plc's supply strategy ? 1) Long-term partnership relations with key supplier of the components 2) A small number of suppliers of the components 3) Outsourcing production of the product to low-cost countries 4) Consolidating purchases of the components of the sourcing from a single supplier to reduce sourcing costs (A) 1 & 2 (B) 2 & 3 (C) 3 & 4 (D) 1 & 4 PLEASE TUTOR AM STRUGGLING TO UNDERSTAND THE BASIS
kengarrettkengarrettTutor9y ago#1
1 is likely: a partnership relationship is more reliable than supplier/buyer. 2 kind of goes with 1 3 quality issues could make this undesirable. 4 all their eggs in one basket. So, I would go for answer C
JJOEL9y ago#2
I think what the question is driving at is that what least option will manufacturer go for in term of purchase of the component am i right?
kengarrettkengarrettTutor9y ago#3
What the question is going for is "In the purchasing of these components, which two of the following are least likely to be a component of Z plc’s supply strategy". For this manufacturer there are some good arrangements with suppliers and some not so good. I think 3 and 4 are not desirable.
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