Answers

Item B is low value, high risk, and there are a small number of alternative suppliers.

Bottle neck

If you want to reduce the risk of a supply disruption, you would choose?

Correct match: Multiple Suppliers

Item A is high value, low risk, and there are multiple potential suppliers.

Leverage

Cost of warranty repairs

Post transaction cost

The inventory control tool that does not require direct line of sight to read the tag on a product(s).

Radio Frequency Identification

Payment for the purchased materials

Transaction cost

A series of alternating bars and spaces printed or stamped on parts, containers, labels, or other media, representing encoded information that can be read by electronic readers.

Linear Barcode

Cost associated with the loss of customer goodwill

Post transaction cost

Cost for replacing defective finished goods

Post transaction cost

If you want to develop strong supplier relationships, you would choose?

Single Supplier

Cost associated with investigating the need for a purchased material

pre transaction cost

A type of inventory system that issues an order whenever a withdrawal is made from inventory.

Base Stock Level System

The term used to describe a debt secured by a bidder for the purpose of providing a guarantee that the successful bidder will accept the contract once awarded, is known as

Bid Bond

Cost for a site visit to qualify a new supplier

Pre transaction cost

Cost to understand suppliers needs and operations

Pre transaction cost

Cost for closing out the purchase order

Transaction Cost

Cost associated with a late delivery

Transaction cost

Cost to transport purchased materials

Transaction cost

If you want to create transportation economies, you would choose?

Single supplier

If your purchase volume is very small, you would choose?

Single supplier

Item C is high value, high risk, and there are few suppliers, but they are excellent.

Strategic

Item D is low value, low risk, and there are lots of potential suppliers.

Non-critical

If you wanted to obtain the most information, you would choose?

Multiple supplier