Question at position 15 Which general sourcing category comprises commodity items where few alternatives of supply exist, supply risk is high, and spend is low?Which general sourcing category comprises commodity items where few alternatives of supply exist, supply risk is high, and spend is low?StrategicNon-CriticalLeverageBottleneck

Question

BlackTom AI · Accepted Answer

To determine the correct general sourcing category, we need to match the described characteristics to the categories.
Option 1: Strategic. This category typically includes high-value, high-spend items that are essential to operations and may require long-term supplier relationships and risk management. The description here emphasizes few supply alternatives, high supply risk, and low spend, which does not align with the strategic category's emphasis on high spend and strategic importance.
Option 2: Non-Critical. Non-Critical items are usually low value, low risk, and plentiful in supply with many alternatives. They are easy to source with little supply risk. The prompt’s emphasis on high supply risk and few alternatives contradicts the hallmark of non-critical items.
Option 3: Leverage. The Leverage category covers high-spend items where there are multiple viable suppliers and competition among them to drive favorable terms. The key feature is spend magnitude and supplier competition, not having few supply options or high risk. Therefore, Leverage does not fit the given scenario.
Option 4: Bottleneck. Bottleneck items are defined by scarce supply options, higher supply risk due to limited alternatives, and often low spend relative to strategic items. The description—few supply alternatives, high supply risk, and low spend—matches this category's typical profile.

Based on these alignments, the option that best fits the described combination of few supply alternatives, high supply risk, and low spend is the Bottleneck category.

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