Matt Lothamer is the supply chain manager for a large plastics manufacturing company. He is responsible for procuring a wide variety of raw materials to be utilized in the manufacturing process of their plastic products. As part of an annual quality control and expense analysis, Matt is reviewing the prices charged by the raw materials suppliers and also seeking bids from competing suppliers to determine whether any savings could be realized. Matt is rewarded by the company with bonuses when he is able to reduce expenses associated with the raw materials as this could lead to higher profit margins on the products they manufacture. Matt knows that saving a few cents can make a dramatic difference since they manufacture thousands of products at their state-of-the-art facility in Indiana. What type of analysis do you believe Matt Lothamer can perform utilizing the data related to the prices charged by their current and prospective raw materials suppliers?
A) cost analysis
B) sales analysis
C) advertising analysis
D) engagement analysis

Question

Quizplus · Accepted Answer

Matt Lothamer is reviewing the prices charged by the raw materials suppliers and seeking bids from competing suppliers to determine whether any savings could be realized. This indicates that he is performing a cost analysis to evaluate the expenses associated with the raw materials procurement. Cost analysis helps in determining the most economical and efficient option for procurement by comparing the costs and benefits of different suppliers and helps in identifying ways to reduce expenses to increase profit margins.

Matt Lothamer Is the Supply Chain Manager for a Large