Firms often use multiple suppliers for important components to mitigate the risks of total supply disruption.

Question

Quizplus · Accepted Answer

This statement is true. Many firms rely on multiple suppliers for important components to reduce the risk of supply disruption due to factors such as natural disasters, labor strikes, or production issues. Using multiple suppliers allows firms to have a backup plan if one supplier is unable to fulfill their order. It also gives firms negotiating power with their suppliers, as they can choose to work with the supplier who offers the best price, quality, and delivery times.

Firms Often Use Multiple Suppliers for Important Components to Mitigate