As illustrated in the Scotts Miracle-Gro case, a sourcing decision must consider strategic as well as financial impacts 

A benefit of a multiple sourcing strategy is (more than one may apply)

What is the significance of cost modelling? Please describe TWO different ways in which a firm may use the results from cost modelling to support its sourcing strategy. 

What is a common tool for understanding the top spend parts/suppliers in spend analysis?

Above is a one-way data table for the TCO comparison between buying a Tesla and buying a Chevy. The first row indicates different assumptions for how many miles the owner will drive per year. The second row calculates the TCO for Tesla minus the TCO for Chevy. What does this data table tell us? (more than one may apply)

Discuss THREE strategic reasons why a company may wish to keep the manufacturing of a product in-house rather than outsource it. 

Which of the following is a drawback of ABC analysis?

Suppose a factory has a learning curve of 80%. It started with a unit cost of $10 for producing 1000 units. What is the unit cost for producing 4000 units?

In cost modeling, what-if analysis is very useful because model assumptions could be wrong. 

Procurement is responsible for a smaller percentage of end-item value compared to the past.