APICS Certified in Logistics, Transportation and Distribution (CLTD) — Question 57

Procurement professional are focused on the total cost of ownership (TCO) in their vendor selection strategies. This implies that:

Answer options

• A. procurement is now increasingly charged with pushing back inventory to vendors.
• B. there is increased consideration of trade-offs among purchase price, quality, and vendor capability.
• C. procurement is decreasing its emphasis on the importance of vendor certification and audit programs.
• D. there is increased emphasis on procuring at the lowest purchase price possible.

Correct answer: C

Explanation

The correct answer, C, indicates that with a focus on TCO, procurement professionals are less concerned with vendor certification and audits, which are often associated with quality assurance. Options A, B, and D do not align with the TCO concept, as they emphasize other aspects of procurement that may not consider the overall costs and benefits associated with vendor relationships.