Which of the following is a challenge of making a business case for straight re-buys?
A.
Terms and conditions
B.
Research of procurement process
C.
Effective inventory control
D.
Identifying suitable suppliers
The Answer Is:
C
This question includes an explanation.
Explanation:
Explanation
For straight re-buy, the specifications for the products are known. Generally, there will be an existing contract with supplier in place. The business need is challenged annually, only on the annual demand. So effective inventory control will help procurement successfully manage straight re-buy.
[Reference: CIPS study guide page 7, LO 1, AC 1.1]
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