Question

Aassume wal-mart, a mass market retailer, is considering different sourcing options for their different product lines. for basic products with steady and predictable future demand, sourcing managers at wal-mart may consider a option, while for products requiring special knowledge and skills to produce, such as water-proof ski jackets, wal-mart may consider a option. group of answer choices direct sourcing, full package full package, direct sourcing cmt contract, full package cmt contract, direct sourcing. What sourcing option may be considered for basic products with steady and predictable future demand?

A. Direct Sourcing
B. Full Package
C. CMT Contract
D. None of the above

Answer 1

For basic products with predictable demand, Wal-Mart might use direct sourcing to lower costs and simplify supply chains, while for specialized items like ski jackets, a full package option would ensure quality and production expertise.

Step-by-step explanation:

For basic products with consistent and foreseeable future demand, Wal-Mart may opt for direct sourcing. This strategy involves negotiating directly with manufacturers, leveraging high-volume orders to secure lower costs. This approach can streamline the supply chain process, especially for straightforward and predictable items. Conversely, for products demanding specialized knowledge and skills, such as waterproof ski jackets, a full package sourcing option may be more suitable.

In this scenario, the supplier not only offers manufacturing services but also manages the procurement of all materials, ensuring quality and production expertise. This comprehensive approach is crucial when intricate specifications are required, guaranteeing that the final product meets the necessary standards. Wal-Mart's sourcing decisions are tailored to the nature of the product, aiming to optimize efficiency, costs, and quality based on the specific characteristics of each item in their inventory.