A large number of suppliers who are all capable of supplying the same product, and thedollars in:

The scenario describes items with high financial impact ("the dollars involved are large") and low supply risk ("A large number of suppliers who are all capable of supplying the same product"). This combination is the definition of "Leveraged items" within the Kraljic Portfolio Matrix, a foundational model in strategic sourcing. The recommended strategy for these items is to leverage the organization's purchasing power through competitive bidding and negotiation to achieve the most favorable terms, as the market has ample capacity and competition.

A. Non-critical items: These items have both low financial impact and low supply risk. The question specifies a large dollar value, making this option incorrect.

B. Operational items: This is a broad, general term. "Leveraged items" is the specific, technical classification from the Kraljic model that precisely matches the high-spend, low-risk scenario described.

D. Bottleneck items: These items have a low financial impact but a high supply risk (e.g., few or single suppliers), which is the opposite of the situation described.

1. Kraljic

P. (1983). Purchasing Must Become Supply Management. Harvard Business Review

61(5)

109–117. The article defines the "Leverage" quadrant (p. 111) as having high profit impact and low supply risk

characterized by many suppliers and substitution possibilities.

2. Gelderman

C. J.

& Van Weele

A. J. (2005). A case study on the Kraljic portfolio matrix. The Journal of Supply Chain Management

41(2)

30-38. This paper analyzes and applies the matrix

reinforcing that leverage items (p. 31) are high-value with low supply market complexity.

3. MIT OpenCourseWare. (2014). 15.762

Supply Chain Planning

Lecture 10: Strategic Sourcing. Massachusetts Institute of Technology. The lecture notes describe the Kraljic Matrix

identifying the "Leverage" quadrant as "High Importance

Low Complexity

" where the sourcing strategy is to "Maximize commercial advantage." (URL: https://ocw.mit.edu/courses/15-762j-supply-chain-planning-fall-2014/resources/mit15762jf14lec10/)