The _____ supplier evaluation system seeks to identify and quantify the total cost of doing business with a given supplier, as the lowest purchase price may not always result in the lowest total cost for an item or service.
A) Six Sigma
B) zero defects
C) cost-based
D) categorical
E) weighted-point

Question

Quizplus · Accepted Answer

This type of supplier evaluation system specifically takes into account the total cost of doing business with a supplier, rather than solely focusing on the purchase price of goods or services. This approach recognizes that there may be hidden costs associated with low-price suppliers, such as higher maintenance or replacement costs. Therefore, a cost-based evaluation system is more comprehensive and accurate in determining the best supplier for a particular item or service. The other options listed may be useful in other contexts, but do not address the issue of total cost in supplier evaluation.

The _____ Supplier Evaluation System Seeks to Identify and Quantify