In tailored sourcing,firms use a combination of two supply sources,
A)one focusing on cost but unable to handle uncertainty well,and the other focusing on flexibility to handle uncertainty,but at a higher cost.
B)one focusing on cost and able to handle uncertainty well,and the other focusing on flexibility to handle uncertainty,but at a higher cost.
C)one focusing on cost but unable to handle uncertainty well,and the other focusing on flexibility to handle uncertainty at a lower cost.
D)one focusing on cost and able to handle uncertainty well,and the other focusing on flexibility to handle uncertainty at a lower cost.

Question

Quizplus · Accepted Answer

Tailored sourcing involves using two supply sources: one that is cost-efficient but not adept at handling uncertainty, and another that offers flexibility to manage uncertainty but comes at a higher cost. This strategy allows firms to balance cost efficiency with the ability to respond to changes in demand or supply conditions.

In Tailored Sourcing,firms Use a Combination of Two Supply Sources