A company that runs its trucks on a mixture of petroleum and ethanol buys its ethanol from Archer Daniels Midland (ADM)Company because it is the only large supplier of ethanol that has an ethanol manufacturing facility in Illinois and is able to meet the trucking company's delivery schedules. The selection of ADM to provide the ethanol was based on a(n):
A)organizational buying criterion.
B)derived demand factor.
C)supplier value dimension.
D)evaluative criterion.

Question

Quizplus · Accepted Answer

The selection of ADM to provide ethanol for the company's trucks is based on an organizational buying criterion, specifically the supplier's ability to meet delivery schedules and having a local manufacturing facility in Illinois. This decision is based on the company's internal operations and needs, rather than external factors such as derived demand or supplier value dimension. Evaluative criteria may come into play during the selection process, but the primary factor is the organizational buying criterion.

A Company That Runs Its Trucks on a Mixture of Petroleum