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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. Decreases the item to item quality variability of items purchased d. Larger orders make quantity discounts more likely

Respuesta :

Answer:

The correct answer is letter "A": There could be supplier interruptions due to political instability.

Explanation:

In supply chain management, single sourcing refers to counting on one supplier who provides a specific material needed for production. While this could help develop the relationship between the manufacturing company and the supplier, in front of major events in the overall economy, such as political instability, the manufacturing company could suffer from shortages if the supplier is affected by the political regulations. For that reason counting on multiple sources avoids those issues to arise.

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