Which of the following is a typical consideration in favor of multiple sourcing?
A) Special tooling is required
B) A single source supplier will have an improved commitment
C) Avoid complacency on the part of a supplier
D) Improved interdependency and risk sharing result from single sourcing
E) Time to market is critical

Question

Quizplus · Accepted Answer

Multiple sourcing can be used to avoid complacency on the part of a supplier. By having multiple suppliers, each supplier is incentivized to maintain a high level of quality and service to ensure that they do not lose business to their competitors. This can lead to improved performance and lower risk for the buyer. Special tooling (A), improved commitment (B), and improved interdependency and risk sharing (D) are typically associated with single sourcing, while time to market (E) can be a consideration for both single and multiple sourcing.

Which of the Following Is a Typical Consideration in Favor