Scenario: A purchasing agent chooses a supplier that offers…
Scenario: A purchasing agent chooses a supplier that offers the lowest cost per unit for a part. This helps the agent reduce the purchasing department’s annual spend, and increases their bonus amount. The parts received from the supplier experience a relatively high defect rate that necessitates higher than usual rework and scrap and sometimes results in production and delivery delays. Does the above scenario involve suboptimization? Yes/No.Explain how/why using several sentences or more to demonstrate full understanding of what suboptimization is and how suboptimization is or is not being illustrated in the scenario.