Final answer:
Deming's concept related to selecting suppliers based on best value is described as (b) 'end price tag decisions'. This approach encourages considering quality, reliability, and long-term supplier relationships beyond just initial cost, promoting economies of scale and improved product quality.
Step-by-step explanation:
One of Deming's 14 points of management suggests that supply chain professionals should make decisions that focus on the best value when selecting a supplier and supplies. This concept is best described by the choice 'b) end price tag decisions'. This management philosophy emphasizes the importance of considering not only the cost but also the quality, reliability, and long-term relationship with suppliers.
To ensure efficiency, companies might adopt strategies such as just in time delivery, which saves on warehousing while increasing quality control. However, to ensure fairness and avoid discrimination in supply chain management, it is essential for decisions to be made on evidence-based practices and to treat all potential suppliers equitably, regardless of their country of origin.
By focusing on 'end price tag decisions', companies are encouraged to look beyond short-term economic gains and consider the overall value that a supplier brings, which can lead to economies of scale and improved product quality. This value-focused approach can also lead to better labor policies, promoting more significant investment in the workforce, aligning with international standards, and ensuring that labor rights are protected within the supply chain.