By evaluating suppliers and how they are working out for a company, buyers can make better (and more informed) decisions. A formal rating of suppliers on all relevant areas of performance is called a(n)
A. evaluation
B. check-list
C. vendor analysis
D. subjective interpretation
E. buyer analysis
Answer: (C) Vendor analysis is the process used to evaluate suppliers and how they are working out for the company. An evaluation (A) is not the most correct answer. An evaluation is less formal and not as detailed as a vendor analysis. A checklist (B) may be part of a vendor analysis but more information is needed to make an assessment of the vendor than is provided for in a checklist, so this answer is incorrect. Subjective interpretation (D) may be used in analyzing the vendor, but objective measurement is also needed, making this a poor choice. Buyer analysis (E) could be performed by the vendor, but is not needed by the buyer analyzing the vendor. Therefore, this answer is not correct.