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02 Sep 2021, 12:20
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Question 3
shivangiindore
The author discusses direct and indirect purchases at the beginning of the first paragraph:
- "In corporate purchasing, competitive scrutiny is typically limited to suppliers of items that are directly related to end products. With “indirect” purchases[...], which are not directly related to production, corporations often favor “supplier partnerships” [...] , which can inappropriately shelter suppliers from rigorous competitive scrutiny that might afford the purchaser economic leverage. "
Here, the author points out a couple of differences between direct and indirect purchases:
- 1) Direct purchases are directly related to end products, while indirect purchases are not
2) Direct purchases are "typically" subjected to competitive scrutiny, while indirect purchases are "often" not subjected to this scrutiny.
After giving these contrasts, the author discusses whether it would be feasible to subject suppliers to competitive scrutiny. In some situations it is more feasible than in other situations.
Does (A) express a factor that differentiates indirect purchases from direct ones?
Quote:
The key word here is "ability." We learned in the first sentence of the passage that indirect purchases are "often" not subjected to competitive scrutiny, but does that mean that companies are unable to subject them to this scrutiny. In fact, the rest of the passage goes on to outline some cases in which it IS feasible to subject indirect prices to competitive scrutiny.
Clearly, companies DO have an ability to subject some indirect purchases to indirect scrutiny. And we know that they ALREADY do this for direct purchases. So, this factor does NOT differentiate direct purchases from indirect purchases.
(A) is out for question 3.
Compare that with (D):
Quote:
Yup, this is the first contrast between direct and indirect products mentioned by the author.
(D) is the correct answer to question 3.
I hope that helps!
14 Jun 2022, 20:01
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For question 510 (which of the following can be inferred about supplier partnerships, as they are described in the passage?), where in the text is choice A disproved? Is it disproved by Type 1 situations in that they can be sustained when there are many alternatives and change??is easy?
For question 511 (which of the following best describes the relation of the second paragraph to the first), the Official Guide says that Choice E is incorrect, as "the second paragraph does not focus exclusively on situations that involve a supplier partnership." From my understanding, the second paragraph??DOES exclusively focus on exploring supplier partnerships. Any clarifying insights would be greatly appreciated.??
For question 513 (which of the following is one difference between Type 2 situations and Type 4 situations, as they are described in the passage?) What does the author mean by Choice B? Is this choice saying they differ in seeing which way is most effective to go about getting competitive bids?
Many thanks
For question 511 (which of the following best describes the relation of the second paragraph to the first), the Official Guide says that Choice E is incorrect, as "the second paragraph does not focus exclusively on situations that involve a supplier partnership." From my understanding, the second paragraph??DOES exclusively focus on exploring supplier partnerships. Any clarifying insights would be greatly appreciated.??
For question 513 (which of the following is one difference between Type 2 situations and Type 4 situations, as they are described in the passage?) What does the author mean by Choice B? Is this choice saying they differ in seeing which way is most effective to go about getting competitive bids?
Many thanks
23 Jun 2022, 10:12
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Question 2
woohoo921
Question 2 asks what we can infer about supplier partnerships.
Here's (A):
Quote:
Do supplier partnerships REQUIRE a large number of suppliers, as indicated by (A)?
Nope. In fact, supplier partnerships are LESS likely to survive with more suppliers. After all, if there are a whole bunch of choices, why would companies limit themselves by partnering with just one supplier? They shouldn't, as explained in the Type 1 scenario.
Question 1
woohoo921
The explanations on the OG books are not written by the same people who write the questions -- so you can take them with a grain of salt.
(E) is out for question 1 because the second paragraph doesn't point out any contradictions. It just explores four different situations that can help companies decide how to subject suppliers to competition.
Question 5
woohoo921
Question 5 asks us about the difference between Type 2 and Type 4 situations. Here's (B):
Quote:
For (B) to be correct, the passage would have to tell us how the purchaser gets competitive bids in Type 2 situations AND in Type 4 situations. In addition, these approaches to getting competitive bids would have to be different.
The passage DOES tell us how purchasers can get competitive offers in Type 2 situations -- they should "continuously test the market and use the results to secure concessions from existing suppliers." However, the passage never tells us how purchasers can get competitive offers in Type 4 situations. Instead, the author kind of gives up on the idea of competition, saying only that "partnerships may be unavoidable."
Because the author doesn't provide an approach to get competitive bids in Type 4 situations, we can eliminate (B).
I hope that helps!
