Final answer:
The correct answer is d: The supplier should be selected based on quality, price, and delivery. All three aspects are crucial as they provide a balanced approach to maximizing efficiency, customer satisfaction, and profitability, without overly favoring one criterion over others.
Step-by-step explanation:
The main answer to the student's question about which statement regarding supplier selection is true is option d: The supplier should be selected on the basis of quality, price, and delivery. While cost is critical, it cannot be the sole criterion for supplier selection. Just as individuals assess the value for money before purchasing goods and services, companies must consider multiple factors when selecting suppliers. Choosing a supplier based solely on price can lead to issues with quality or delivery timelines, which can ultimately impact customer satisfaction and the profitability of the business. Factors like lead time are essential but not the exclusive criteria for supplier choice. Quality is a critical product characteristic; however, it should be balanced with cost and the ability to supply on time. Personal relationships should not be the deciding factor in professional supplier selection processes, as they do not objectively represent the supplier's ability to fulfill business needs.Therefore, a multi-faceted approach to supplier selection is considered best practice. Supply and demand principles also inform business decisions. Suppliers are in the business to make a profit and maximizing profits often involves production technology that minimizes total costs. Additionally, the physical aspects of a product and the supplier's location can provide competitive advantages. Thus, an informed and balanced approach respecting the quality, cost, and delivery capabilities is vital when selecting suppliers.