Squeaky Klean,a small consumer products company,purchases custom-designed plastic bottles for its cleaning products that are made at a single plant in Cleveland,Ohio.To make these bottles,specialized tooling must be purchased at a high cost and installed at a supplier's plant.Its sourcing strategy for bottles should be to:
A)Use three or more suppliers.
B)Dual source.
C)Single source.
D)Insource bottle production.

Question

Quizplus · Accepted Answer

Due to the high cost of specialized tooling and the need for custom-designed bottles, it would be most efficient for Squeaky Klean to single source their bottles from the supplier in Cleveland, Ohio. This would allow for consistency in quality and reduce costs associated with tooling and transportation. Using multiple suppliers or dual sourcing could potentially increase costs and quality control issues. Insourcing bottle production would also require significant investment in equipment and resources.

Squeaky Klean,a Small Consumer Products Company,purchases Custom-Designed Plastic Bottles for Its