IJK, Inc.

Vendor: ISM
Product: CORE
Update on: Oct 18, 2025
Questions: 312

ISM CORE Question Answer

IJK, Inc. is currently under contract with Supplier X to provide parts utilized in retail products manufactured by IJK. Demand for UK's products is expected to increase dramatically, and thus the firm's supply manager wants to explore possible cost savings. Supplier X has been a reliable supplier for many years and provides excellent quality, on-time service, and a willingness to work with UK on improvements. However, the supply manager believes Supplier X’s price is too high, as a competitor is offering a lower price. Given this situation, which of the following is the BEST course of action for UK's supply manager to take?

Demand concessions from Supplier X

Meet with Supplier X with the intent of working to reduce costs

Do nothing for the moment, but wait to see how much volume increases

Transition to the competitor offering the lower price