Which of the following problems may be identified as open-ended problems? Select TWO that apply:

Which of the following problems may be identified as open-ended problems? Select TWO that apply:
A . Shortage of key medicines in healthcare industry
B . A cyber attack takes down whole company’s IT system
C . Engine failures cause flight cancellations.
D . Logistics costs incur a large portion in wholesale prices
E . The suppliers don’t comply with the company’s policy on underage labour.

View Answer

Answer: D, E

Explanation:

Open-ended problem is something stopping the achievement of an objective or blocking progress. To solve this type of problems, procurement professional should find a way to unblock the block-age. In the above question, high logistics cost is an obstacle to cost cutting objective while supplier’s incompliance prevents the company to achieve its sustainable objective.

Reference: CIPS study guide page 11

LO 1, AC 1.1