Certified in Production and Inventory Management (CPIM) Practice Test 5

Mr. Rodriguez is a procurement manager for a manufacturing company that produces automotive parts. He has received a request from the production department for a specific type of alloy that is crucial for a new product line. After analyzing potential sources, Mr. Rodriguez identifies three suppliers who can provide the alloy. Supplier A offers the alloy at a lower price but has a longer lead time for delivery. Supplier B offers a slightly higher price but can deliver the alloy within the required timeframe. Supplier C offers the alloy at a premium price but with a shorter lead time than Supplier B. What should Mr. Rodriguez consider when making the sourcing decision?