When making a decision about global sourcing,which of the following would be a cost consideration?
A) Vendor employees' working conditions
B) Vendor negotiation fees
C) Retailer inventory carrying costs
D) Vendor factory standards
E) Retailer's differentiation from competitors

Question

Quizplus · Accepted Answer

Retailer inventory carrying costs are a cost consideration when making a decision about global sourcing. These costs include storage, transportation, insurance, and handling expenses associated with inventory. Other options such as vendor factory standards and working conditions, as well as retailer differentiation from competitors, may impact the company's corporate social responsibility and brand image, but they are not directly related to cost considerations. Vendor negotiation fees may impact cost, but they are not the only factor to consider, and may not be directly related to sourcing decisions.

When Making a Decision About Global Sourcing,which of the Following