Which sourcing strategy strikes a balance between economies of scale and risk mitigation:
A) Early supplier involvement
B) Single sourcing
C) Multiple sourcing
D) Supplier "portfolio"
E) Outsourcing

Question

Quizplus · Accepted Answer

Supplier "portfolio" allows for a mix of suppliers to balance the cost benefits of economies of scale while still mitigating the risks associated with relying on a single source. By diversifying the supplier base, companies can reduce the impact of any potential disruptions such as production hiccups, natural disasters, or market shifts. This strategy helps to ensure a continuous supply of goods or services, while still maintaining cost efficiency.

Which Sourcing Strategy Strikes a Balance Between Economies of Scale