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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 & 4PLEASE TUTOR AM STRUGGLING TO UNDERSTAND THE BASIS
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
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?
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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