APICS Certified Supply Chain Professional (CSCP) — Question 531

Which of the following types of raw materials would be most appropriate to source via an Internet-based trading exchange?

Answer options

• A. Expensive material that is critical to the finished good
• B. Expensive material for which there are several substitutes
• C. Inexpensive material that is critical to the finished good
• D. Inexpensive material for which there are many sources

Correct answer: D

Explanation

Option D is correct because inexpensive materials that have many sources are ideal for online exchanges, facilitating competitive pricing and easier procurement. Options A and C focus on critical materials, which may require more direct negotiation and assurance of quality, while option B involves expensive materials, where substitutes might complicate the sourcing process.