Question

Upstream from Umami Snacks is the set of firms that supply the raw materials, information, and expertise to make the seaweed crisps. The recipe for seaweed crisps is quite simple: nori (red seaweed), olive oil, and spices. From its production of wasabi peas and arare, Umami already has a supplier of olive oil and spices, but it needs to find a supplier for the nori.Nori can be purchased from international suppliers in Korea and China and from local suppliers.A number of factors must be considered when choosing a supplier, and often concessions must be made. In the selection of the nori supplier, which two factors should be prioritized?
a. price
b. payment terms
c. quality
d. managment style

Answer 1

Answer: Price and Quality (a. and c.)

Explanation:

Price. This was one of the best choices. The price of the raw materials has a significant impact on the price Umami can charge for its seaweed snacks; therefore, price must be controlled.

Quality. This was one of the best choices. Umami is known for its high-quality snacks, and therefore located a high-quality supplier to manufacture high-quality products.