CORe Exam Dumps | For several years, an environmental services company has contracted on a single-source basis with a supplier

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HBX.CORE.v2024-09-27.q132
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Question 83/132

For several years, an environmental services company has contracted on a single-source basis with a supplier that offers highly specialized testing procedures. The supplier's performance is excellent, but it has Instituted frequent rate increases. The company's supply manager is under pressure to reduce costs wherever possible, but developing other sources will be time-consuming. Given this situation, which of the following actions should the supply manager take FIRST?

A. Issue an RFI to identify other potential sources

B. Negotiate a maximum yearly limit on price increases with the current supplier

C. Inform the current supplier that the contract will be terminated If it does not reduce prices

D. Perform a 'should cost' analysis of the current supplier's pricing

Correct Answer: D

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