Certified in Production and Inventory Management (CPIM) Practice Test 2

Scenario: Mr. Thompson, the procurement manager of a manufacturing company, is tasked with selecting a supplier for a critical component needed in the production process. He has received proposals from three potential suppliers. Supplier A offers the lowest price but has a history of inconsistent quality. Supplier B offers a slightly higher price but has a reputation for reliability and timely deliveries. Supplier C offers the highest price but provides additional value-added services and has a strong track record of innovation and continuous improvement. What should Mr. Thompson prioritize when selecting the supplier?