A common source of business risk for inventory is the reliance on a few key suppliers.

Question

Quizplus · Accepted Answer

Depending on a small number of suppliers can increase a company's exposure to supply chain disruptions, price volatility, and quality issues, all of which can have a negative impact on inventory management and profitability. Diversifying the supplier base and establishing contingency plans with alternate suppliers can help mitigate this risk.

A Common Source of Business Risk for Inventory Is the Reliance