In the context of sourcing, multiple suppliers:
A) often provide the ability to form close partnerships.
B) often provide economies of scale.
C) lower the risk of supply disruption.
D) lower the chances of using a push or pull system.

Question

Quizplus · Accepted Answer

C is correct because using multiple suppliers spreads the risk of supply disruption across several sources, reducing the impact if one supplier fails. A) is incorrect because managing relationships with multiple suppliers can actually make it harder to form close partnerships due to divided attention and resources. B) is incorrect because economies of scale are typically achieved through larger orders with single suppliers, not by spreading orders across multiple suppliers. D) is incorrect because the choice of using a push or pull system is a strategic decision that is not directly affected by the number of suppliers.

In the Context of Sourcing, Multiple Suppliers