All of the following are advantages of a cost-based supplier evaluation system except _____.
A)total cost approach
B)specific areas of supplier nonperformance identified
C)objective supplier ranking
D)greatest potential for long-range improvement
E)good for firms with limited resources

Question

Quizplus · Accepted Answer

A cost-based supplier evaluation system typically requires significant resources to accurately calculate total costs, including both direct and indirect costs associated with each supplier. This can be challenging for firms with limited resources, making it less advantageous for such firms. The other options (A, B, C, D) are generally considered advantages of using a cost-based approach.

All of the Following Are Advantages of a Cost-Based Supplier