Which One of the Following Statements Regarding Supplier Selection Criteria

Multiple Choice

Which one of the following statements regarding supplier selection criteria is TRUE?

A) Suppliers should be selected primarily on the basis of the shortest lead time because higher lead time increases the cost of inventory.
B) Suppliers should be selected on the basis of quality because quality is always the most important characteristic of a product.
C) Suppliers should be selected on the basis of quality, price, and delivery.
D) Suppliers should be selected on the basis of price only because the cost of materials is a significant portion of total product cost.