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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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  1. 3 August, 08:31
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    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).
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