Which of the following is a reason that single sourcing is considered risky/bad?
A) There could be supplier interruptions due to political instability
B) It could establish close relationships with the supplier
C) Larger orders make quantity discounts more likely
D) Decreases the item to item quality variability of items purchased

Question

Quizplus · Accepted Answer

Single sourcing puts all of the organization's sourcing needs and dependency on one supplier, which could lead to supplier interruptions due to various reasons such as political instability, natural disasters, or bankruptcy. This can result in delayed production or even a complete halt in manufacturing if the supplier is unable to provide the materials or goods needed to keep the operation running smoothly.

Which of the Following Is a Reason That Single Sourcing