Dual sourcing refers to contracting with multiple supply sources ______.
A)as a hedge against price decreases by a supplier
B)as a buffer against disruptions in the supply chain
C)as a way to quickly expand production capacity
D)as a way to give an equal opportunity to different suppliers

Question

Quizplus · Accepted Answer

Dual sourcing is done to create redundancy in the supply chain and minimize the risk of disruptions caused by any one supplier. This is particularly important when there is a high degree of dependence on a single supplier for critical inputs. The other options - A, C, and D - are not the primary reasons for dual sourcing.

Dual Sourcing Refers to Contracting with Multiple Supply Sources ______