Single sourcing for a product is used to

Question

Quizplus · Accepted Answer

Single sourcing for a product is used to guarantee the supplier sufficient business when the supplier has to make a significant buyer-specific investment. Single sourcing allows the supplier to be confident that they will receive a steady stream of business, which can justify their investment.

Option B is incorrect because single sourcing does not ensure a degree of competition, as there is only one supplier involved. Option C is also incorrect because single sourcing means there is no backup in case the primary source fails to deliver. Therefore, the correct answer is A, as it accurately describes the main purpose of single sourcing.

Single Sourcing for a Product Is Used to