There are numerous advantages when firms utilize fewer suppliers. Which of the following items would not be one of those advantages?
A) Economies of scale.
B) Less regulatory oversight by governmental authorities.
C) Lower rates because of higher volumes.
D) Service level improvements.
E) Symbiotic relationships with just a few suppliers.

Question

Quizplus · Accepted Answer

Utilizing fewer suppliers does not inherently lead to less regulatory oversight by governmental authorities. Regulatory oversight is typically determined by industry standards and government regulations, not by the number of suppliers a firm uses.

There Are Numerous Advantages When Firms Utilize Fewer Suppliers