Observation

Most of the candidates could not satisfactorily answer the question. Here is the solution of the entire question.

(a)      Product sourcing is a procedure used by buyers to survey, evaluate and determine the supplier that will best meet the requirement of an organization.              
                          
(b)     Reasons for Product Sourcing

-         To avoid out of stock.
-         To increase rate of turnover.
-         To compete with middlemen’s prices.
-         To select items that buyers want to buy.
-         To offer customers good range of products.
-         To find quality items that will lead to profitability.
-         To procure goods at reasonable prices.
-         To meet up with customers demand.

(c)      Ways of Carrying out Products Sourcing

-         direct sourcing from the manufacturer.
-         sourcing from journal publications
-         sourcing from the internet.
-         sourcing from the middlemen.
-         through trade fair.
-         through various association of chambers of commerce.