Question

In: Operations Management

Which of the following best describes a high supply risk? a. Sourcing from multiple suppliers. b....

Which of the following best describes a high supply risk?

a.

Sourcing from multiple suppliers.

b.

Sourcing from ten suppliers with an alternative source of supply.

c.

Sourcing from one supplier without an alternative source of supply.

d.

Sourcing from one supplier with an alternative source of supply.

Which of the following is not a supplier strategy?

a.

Partnership.

b.

Competitive Bidding.

c.

Secure Supply.

d.

First respondent wins the order.

Which of the following best describes a low supply risk?

a.

Sourcing from one supplier with an alternative source of supply.

b.

Sourcing from one supplier with an alternative source of supply.

c.

Sourcing from many suppliers and switching costs are low.

d.

Sourcing from many suppliers and switching costs are high.

Solutions

Expert Solution

Sourcing from one supplier without an alternative source of supply.

When there is only one supplier and there is no alternative in case of the vendor gets failed then the company will not have any supplier to purchase the raw material.

Partnership

Partnership may be the form of business or the companies come together to get a mutual goal.

Sourcing from many suppliers and switching costs are low.

When there are many suppliers then the company can choose from other suppliers if not supplier gets failed. Further lower switching cost will help the company to go to another supplier with less money spending.


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