Question

Supply base rationalization:A. explains why a particular supplier has been chosen for a particular requirement.B. is an attempt to reduce the total number of suppliers to an organization.C. is an excuse by a supplier for poor delivery.D. is most appropriate when on-time delivery is the key issue.E. is a master scheme of categorizing suppliers by dollar volume and location.

Answer 1

Answer: Option B

Explanation: Supply base rationalization refers to the process in which an organisation reduces its number of suppliers. This process is initiated to have good customer service from the best suppliers and maintaining healthy professional relationships with them.

These are opted by the organisations that are dependent on various different suppliers and are having difficulty managing the operations due to this.

Hence the correct option is B.