Jones Company has identified an item for which the supply risk is high and the value of the purchase to the firm is low.A recommended sourcing strategy for Jones is to:
A)Use multiple sourcing.
B)Increase efficiencies.
C)Build partnerships.
D)Consolidate purchases.

Question

Quizplus · Accepted Answer

Using multiple sourcing is the best strategy for mitigating the high supply risk and low value purchase. By engaging multiple sources for this item, the company can reduce the impact of any one supplier's failure to deliver or meet quality standards. Additionally, it allows for price comparison and negotiation, ensuring that the company gets the best deal possible for this low-value purchase.

Jones Company Has Identified an Item for Which the Supply