The purchasing strategy used by an automobile manufacturer when it orders seats for a specific car model from several vendors is
A) sole sourcing.
B) multiple sourcing.
C) just-in-time sourcing.
D) backup sourcing.
E) parallel sourcing.

Question

Quizplus · Accepted Answer

When an automobile manufacturer orders seats for a specific car model from several vendors, it is using multiple sourcing strategy. This method allows the company to have more options and flexibility in case one vendor is unable to provide the seats. It also allows the company to negotiate better prices and terms with different vendors, promoting competition among suppliers.

The Purchasing Strategy Used by an Automobile Manufacturer When It