A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier.

Question

4 years ago

9

A company has decided that it no longer needs to extensively count and inspect the products it buys from a particular supplier.

This suggests that the buying company has is in the volume consolidation stage of developing procurement strategy.A) TrueB) False

Business

1 answer:

Aleksandr-060686 [28] · Answer 1 · 2021-12-27T02:19:14+03:00

Answer: False

Explanation: Under the volume consolidation stage the organisation reduces it suppliers for the procurement of raw materials and tries to increase its negotiation strength.

In the given case, company is no longer worries about the quality and quantity the materials they are receiving. There is nothing mentioned about the negotiation or reduction of number of suppliers.

Hence we can conclude that the given statement is false.