Sourcing inputs from multiple suppliers is a strategy to
A) reduce risks linked to just-in-time inventory systems.
B) quickly move materials through the production process.
C) increase inventory turnover.
D) manage the distribution of finished products to end users.
E) decrease the organization's need for working capital.

Question

Quizplus · Accepted Answer

By sourcing inputs from multiple suppliers, an organization can reduce the risks associated with just-in-time inventory systems, such as supply chain disruptions, stockouts, or quality issues. By having multiple sources of supply, the organization can ensure a more resilient and flexible supply chain, as well as negotiate better prices and terms with suppliers. While this strategy may increase inventory levels and require more working capital, it can ultimately lead to cost savings and improved performance. The other choices are not directly related to the benefits of sourcing inputs from multiple suppliers.

Sourcing Inputs from Multiple Suppliers Is a Strategy to