ISM Supply Management Core Exam CORE Question # 39 Topic 4 Discussion

ISM Supply Management Core Exam CORE Question # 39 Topic 4 Discussion

CORE Exam Topic 4 Question 39 Discussion:
Question #: 39
Topic #: 4

After working for several years at ABC, Inc.—a large manufacturing company—Smith moves to a senior position at XYZ, a smaller firm which is part of ABC's family of companies. In an effort to lower costs, Smith begins negotiations with a supplier that sells to both ABC and XYZ. While at ABC, Smith was able to negotiate very favorable contracts for parts and services. However, Smith is unable to obtain as favorable terms for XYZ with the same supplier.

To improve XYZ's position, which of the following is the BEST course of action for Smith to take?


A.

Inform the supplier that the contracts will be cancelled unless concessions are made


B.

Apply knowledge of ABC's operations to demand better pricing


C.

Issue an RFI to identify other potential suppliers


D.

Combine requirements of XYZ with ABC to leverage volume


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