Which of the following statements supports multiple sourcing:

- an ongoing long-term contract exists with a preferred supplier.

- supply is plentiful and supply assurance is important.

- there is a patent involved.

- the order is small.

- concerns exist about supplier capacity for future volume.

Question

Princess

Business

3 August, 08:06

Which of the following statements supports multiple sourcing:

- an ongoing long-term contract exists with a preferred supplier.

- supply is plentiful and supply assurance is important.

- there is a patent involved.

- the order is small.

- concerns exist about supplier capacity for future volume.

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Answers (1)

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Howard Knapp · Answer 1

Concerns exist about supplier capacity for future volume.

Explanation:

The multisourcing is a method in which the supplier base is expanded increasing the actual number of suppliers, because the needs of the company are increasing.

Advantages:

-Alternative sources of materials in case of delivery stoppage by a supplier.

-Reduced probability of bottlenecks due to insufficient production capacity to meet peak demand.

- Increased competition mong suppliers leads to better quality, price, delivery, product innovation and buyer's negociation power.

-More flexibility to reat to unexpected events that could endanger supplier's capacity.

Disadvantages:

-Reduced efforts by supplier to match buyer's requirements.

-Higher cost for the purchasing organization (greater number of orders, telephone calls, records, and so on).

Which of the following statements supports multiple sourcing:- an ongoing long-term contract exists with a preferred supplier.- supply is plentiful and supply assurance is important.- there is a patent involved.- the order is small.- concerns exist about supplier capacity for future volume.