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

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Question restatement: 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?

Option 1: Bottleneck. A bottleneck item is usually high risk or high criticality, often with limited supplier options and significant impact on operations. Since the scenario describes low value and low risk with many suppliers, this option does not fit.

Option 2: Leverage. Leverage items are high value but low risk and have many suppliers, allowing the buyer to negotiate favorable terms and consolidate purchases to maximize leverage. The described characteristics (low value, low risk, many suppliers) do not align with high value, so this option is not appropriate.

Option 3: Non-Critical. Non-Critical items are typically low value and low risk, with abundant supply and numerous potential suppliers. This matches the given scenario, where value and risk are both low and supply options are plentiful.

Option 4: Strategic. Strategic items are high value and high risk, with few viable suppliers, requiring careful relationship management and long-term planning. The stated conditions contradict this profile.

Summary of reasoning across options: The classification hinges on value and risk, plus supplier availability. Bottleneck and Strategic imply higher risk or strategic importance and fewer suppliers, which is incompatible with low value/low risk/many suppliers. Leverage fits high value, low risk with many suppliers, so it does not match. Non-Critical corresponds to low value and low risk with ample supplier options, aligning with the scenario.

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

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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

View Explanation

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