Part 1In the portfolio model, what items are characterized by low profit impact and low supply risk?Part 2
A. leverage items B. routine items C. critical items D. bottleneck items

Question

Part 1In the portfolio​ model, what items are characterized by low profit impact and low supply​ risk?Part 2
A. leverage items B. routine items C. critical items D. bottleneck items

BlackTom AI · Accepted Answer

Question restatement: In the portfolio model, what items are characterized by low profit impact and low supply risk? Part 2: A. leverage items B. routine items C. critical items D. bottleneck items

Option A: leverage items. These items typically have high profit impact and low supply risk, meaning they can affect profits significantly but their supply is reliable. Describing them as low profit impact would misclassify their strategic importance, making this option incorrect.

Option B: routine items. Routine items are generally low in both profit impact and supply risk. They are the everyday elements that run smoothly with few disruptions and do not contribute heavily to overall profitability, which aligns with the description in the question. This makes the option plausible and is why it is considered correct in this context.

Option C: critical items. Critical items usually exhibit high profit impact and high supply risk because they are essential to operations but may be scarce or hard to source. Labeling them as low profit impact and low supply risk contradicts their typical characteristics, so this option is incorrect.

Option D: bottleneck items. Bottleneck items tend to have low supply risk but high impact on the process, or sometimes high risk in supply, depending on context, because they constrain throughput. Calling them low profit impact and low supply risk would ignore their role in limiting production or service delivery, rendering this option incorrect.

In summary, the description in the question aligns with routine items as the ones with both low profit impact and low supply risk, while the other options describe categories with higher impact or higher risk in some dimension, making them inconsistent with the given characterization.

Homework:Assignment #7

Part 1In the portfolio model, what items are characterized by low profit impact and low supply risk?Part 2 A. leverage items B. routine items C. critical items D. bottleneck items

View Explanation

Log in for full answers

Similar Questions

Part 1In the portfolio model, what items are characterized by low profit impact and high supply risk?Part 2 A. bottleneck items B. routine items C. leverage items D. critical items

Question at position 44 In which item category would the sourcing strategies of maintaining safety/strategic stocks, developing contingency plans, strengthening relationships, and searching for alternatives, be appropriate?Strategic ItemsLeverage ItemsNon-Critical ItemsBottleneck Items

Question at position 26 In which sourcing category would an item typically be classified, if it is considered to be low value, low risk, and there are lots of potential suppliers?BottleneckLeverageNon-CriticalStrategic

Question at position 40 The buyer's assessment of the risk associated with a supplier is influenced by whether or not it is a non-critical, leverage, bottleneck, or strategic purchase.TrueFalse

Please match the four types of purchases with their associated supply risk and profit impact in Kraljic's Portfolio Purchasing Model. 1: High supply risk, low profit impact 2: low supply risk, high profit impact 3: High supply risk, high profit impact 4: low supply risk, low profit impact

In a consumer society, many adults channel creativity into buying things

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler