A healthcare facility is evaluating two suppliers for IV solutions. Supplier A offers a lower unit price but has a 15% defect rate. Supplier B charges more but has a 1% defect rate. Which supplier is typically preferred from a supply management perspective?
-
A
Supplier A, because unit price is the primary driver of supply decisions
-
B
Supplier B, because quality and total cost including waste and rework must be considered
-
C
Supplier A, because volume discounts will offset the defect rate over time
-
D
Supplier B only if the contract includes penalty clauses for defects