Supply chain risk is likely to do what if purchases are increasingly made from a single supplier?
A) Increase
B) Decrease
C) Stay relatively the same
D) Supply chain risk and supplier diversification are unrelated.

Question

Quizplus · Accepted Answer

When purchases are made from a single supplier, there is a higher dependence on that supplier for the success of the business. If something were to happen to that supplier, such as bankruptcy or a natural disaster, the entire supply chain would be negatively impacted. This can increase the overall supply chain risk.

Supply Chain Risk Is Likely to Do What If Purchases