Which of the following is not typically true of dual sourcing using the "70-30" approach?
A) 70 percent of the volume is awarded to one supplier, 30 percent to a second supplier
B) Economies of scale are obtained from the "big supplier"
C) Frequently used when time to market is critical
D) The "little supplier" provides competition and a backup in case of emergencies
E) When the "big supplier" fails to perform the percentages may be reversed by the buyer

Question

Quizplus · Accepted Answer

Dual sourcing using the "70-30" approach is frequently used to provide competition and a backup in case of emergencies. Economies of scale are obtained from the "big supplier," and the "little supplier" provides a backup in case of emergencies. When the "big supplier" fails to perform, the percentages may be reversed by the buyer. However, the approach is not typically used when time to market is critical.

Which of the Following Is Not Typically True of Dual