Which of the following is a reason that single sourcing is considered risky/bad?
A)The buyer's required ordering quantities are very low
B)Larger orders make quantity discounts more likely
C)The limited (finite)capacity of one supplier
D)Decreases the item to item quality variability of items purchased

Question

Quizplus · Accepted Answer

Single sourcing means relying on one supplier for a particular product or service. This can be risky because if anything goes wrong with that supplier, the buyer is left with no alternative sources. For example, if the supplier goes out of business or experiences production delays, the buyer is left without the product or service they need. Additionally, if the supplier's capacity is limited and cannot meet the buyer's demand, the buyer is stuck without alternatives. Thus, the limited capacity of one supplier is a reason why single sourcing is considered risky/bad. The other options listed are not related to the risks of single sourcing.

Which of the Following Is a Reason That Single Sourcing