ISM Supply Management Integration INTE Question # 40 Topic 5 Discussion

ISM Supply Management Integration INTE Question # 40 Topic 5 Discussion

INTE Exam Topic 5 Question 40 Discussion:
Question #: 40
Topic #: 5

RST, Inc. is an electronics manufacturer. The profit margins for a major product developed by RST are falling. Accordingly, the firm asks the supply manager to identify ways to reduce the product's costs. The product includes a high-tech, high-cost component for which only one source is able to meet quality standards. Which of the following is the BEST way the supply manager can achieve cost reductions from this supplier?


A.

Conduct a should-cost analysis


B.

Renegotiate with the supplier, citing changes in marketplace


C.

Revise order quantities based on updated sales forecasts


D.

Recommend reengineering or revising specifications


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