Maintaining multiple suppliers for each item can actually increase the probability and level of supply base risk.

Question

Quizplus · Accepted Answer

Maintaining multiple suppliers can increase the level of supply base risk because it may lead to dependencies and increased complexity in managing relationships with multiple suppliers. Additionally, if one supplier faces an issue, it could potentially impact the entire supply chain. However, having only one supplier also poses a risk of potential disruption if the supplier experiences issues. Therefore, it is important to carefully consider and manage the supplier portfolio to balance risk and opportunity.

Maintaining Multiple Suppliers for Each Item Can Actually Increase the Probability