To reduce the risk of supply disruption,a company should
A) make sure single suppliers have multiple geographically separated locations.
B) require single suppliers to hold enough inventory at their production facility to carry through any potential disruption.
C) agree to pay higher prices to single suppliers to ensure priority service during a supply disruption.
D) do all of the above.

Question

Quizplus · Accepted Answer

Requiring suppliers to have two or more geographically separated locations is common. When suppliers are asked to carry more inventory, it should not be stored on-site at the supplier. Agreeing to higher prices for priority service is not generally considered a method of reducing disruption risk.

To Reduce the Risk of Supply Disruption,a Company Should