The advantages of multiple sourcing can be viewed as the disadvantages of single sourcing and vice versa. The best scenario would be one that can obtain the advantages of both.This might be done by applying significant pressure to single-source suppliers or by providing significant certainty to suppliers in a multiple-sourcing environment.This may be accomplished through the use of contract length. Short-term contracts regardless of single or multiple suppliers can be used as a source of punishment. In some instances, long-term contracts can be viewed as a reward.

Question

Quizplus · Accepted Answer

The statement accurately describes the advantages and disadvantages of both single and multiple sourcing, and suggests that a desirable scenario would involve obtaining the benefits of both approaches. It also proposes the use of contract length as a means of incentivizing suppliers in either environment.

The Advantages of Multiple Sourcing Can Be Viewed as the Disadvantages