How can a firm best protect itself against an interruption in the supply of parts?
A) Transport the parts in its own transportation vehicles.
B) Maintain more than one supply source.
C) Use suppliers from the city where the firm is located.
D) Select suppliers through a competitive bidding process.

Question

Quizplus · Accepted Answer

Maintaining more than one supply source can help a firm mitigate the risk of an interruption in the supply of parts. If one supplier cannot provide the parts, the firm can rely on the other supplier(s) to avoid any disruption in production. This strategy also helps the firm negotiate better pricing and quality control measures with the suppliers. Using transportation vehicles or selecting suppliers through a competitive bidding process may not necessarily address the root cause of supply interruption. Choosing suppliers based on their location can also limit the firm's options and may not provide the best quality or pricing.

How Can a Firm Best Protect Itself Against an Interruption