APICS Certified Supply Chain Professional (CSCP) — Question 364

Which of the following reasons supports dividing component purchases among numerous suppliers instead of utilizing a single supplier for multiple components?

Answer options

• A. Different suppliers enable averaging overall purchase pricing, allowing for more accurate product costing.
• B. Different suppliers tend to protect any one supplier from access to overall design intellectual property.
• C. Fewer supplier product requirements allow each supplier to focus major efforts on required product quality.
• D. Each supplier will be more responsive as they attempt to be recognized and approved for additional purchasing.

Correct answer: B

Explanation

The correct answer is B because using multiple suppliers helps to protect sensitive design information from being fully accessible to any one supplier, thus ensuring better security of intellectual property. Options A, C, and D do not directly address the primary concern of protecting design information, focusing instead on pricing, quality, and supplier responsiveness.