All of the following can increase supply chain risk except:
A)Using a supplier that is having financial difficulty.
B)Holding higher levels of inventory of critical materials.
C)A company in Canada using suppliers in Thailand.
D)Single sourcing.

Question

Quizplus · Accepted Answer

Holding higher levels of inventory of critical materials can actually lower supply chain risk as it provides a buffer against unexpected disruptions in the supply chain. A, C, and D all increase supply chain risk as they involve relying on a single source, using suppliers in geographically distant locations, or working with financially unstable suppliers.

All of the Following Can Increase Supply Chain Risk Except