APICS Certified Supply Chain Professional (CSCP) — Question 202

A company utilizing supplier relationship management (SRM) will be concerned primarily about which of the following factors when selecting a supplier?

Answer options

• A. Lowest cost
• B. Shortest lead time
• C. Culture
• D. Risk aversion

Correct answer: A

Explanation

The correct answer is A, as organizations often prioritize cost efficiency when selecting suppliers to maximize profitability. While lead time, culture, and risk aversion are also important considerations, they typically come secondary to the need for competitive pricing in supplier evaluation.