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Which of the following reasons supports dividing component purchases among numerous suppliers instead of utilizing a single supplier for multiple components?
A.
Different suppliers enable averaging overall purchase pricing, allowing for more accurate product costing.
B.
Different suppliers tend to protect any one supplier from access to overall design intellectual property.
C.
Fewer supplier product requirements allow each supplier to focus major efforts on required product quality.
D.
Each supplier will be more responsive as they attempt to be recognized and approved for additional purchasing.
A:A. Different suppliers enable averaging overall purchase pricing, allowing for more accurate product costing.
By diversifying component purchases among multiple suppliers, a company can leverage competition in the market to negotiate better pricing for each component. This averaging of overall purchase pricing helps to mitigate the risk of price fluctuations from a single supplier and allows for more accurate product costing, which is essential for maintaining profitability and competitiveness in the market. Therefore, option A is the most relevant reason for dividing component purchases among numerous suppliers.
Different suppliers tend to protect any one supplier from access to overall design intellectual property
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yassernaga
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5 months, 3 weeks ago