How can a firm best protect itself against an interruption in the supply of parts?
A)Select suppliers through a competitive bidding process.
B)Use suppliers from the city where the firm is located.
C)Maintain more than one supply source.
D)Transport the parts using the firm's transportation vehicles.

Question

Quizplus · Accepted Answer

Maintaining more than one supply source is the best way to protect a firm against an interruption in the supply of parts. This provides the firm with an alternative supply source in case one of the suppliers is unable to deliver the required parts due to unforeseen circumstances. This reduces the risk of production delays or shutdowns. Selecting suppliers through a competitive bidding process and using suppliers from the city where the firm is located can also be beneficial, but they do not necessarily provide protection against supply interruptions. Transporting parts using the firm's transportation vehicles is not always feasible or cost-effective, especially for large or specialized parts.

How Can a Firm Best Protect Itself Against an Interruption