What is the advantage of using multiple sources of supply?
A) During shortages better services can be received.
B) Discounts can be obtained with low-volume buying.
C) The cost of ordering is low.
D) Greater variety of goods can be obtained.

Question

Quizplus · Accepted Answer

By using multiple sources of supply, it is possible to obtain a greater variety of goods, which can be helpful in meeting the needs of customers with different preferences or requirements. However, the other options are not necessarily advantages of using multiple sources of supply. While better services may be available during shortages, it is also possible that multiple suppliers could lead to greater complexity in supply chain management. Discounts with low-volume buying may be available, but this is not necessarily a benefit of using multiple suppliers, as some suppliers may require higher order volumes to qualify for discounts. Similarly, the cost of ordering may not necessarily be lower when using multiple suppliers, as there may be additional costs associated with managing multiple relationships and logistics.

What Is the Advantage of Using Multiple Sources of Supply