Overall supply chain risk may be increased by implementing which of the following strategies?
Overall supply chain risk may be increased by implementing which of the following strategies?
Single sourcing a product that makes the highest annual profit can increase overall supply chain risk. Relying on a single supplier for an important product introduces vulnerability to supply chain disruptions. If the sole supplier encounters issues like production delays, financial troubles, or logistical challenges, the company has no alternative sources to fall back on, which can severely impact operations and profitability.
A, no?
Overall supply chain risk may be increased by implementing the strategy of single sourcing a product that makes the highest annual profit. Single sourcing involves purchasing a product from only one supplier. While this can lead to cost savings and improve supplier relationships, it also increases the risk of supply chain disruption, such as supplier bankruptcy or production disruptions. In this case, if the single sourced product experiences a disruption, it could have a significant impact on the company's profitability. On the other hand, Options B (outsourcing products that are not well suited to a company's operations), C (identifying multiple sources for a product with the potential for supply chain disruption), and D (internally manufacturing products with high levels of technical intellectual property) can help mitigate supply chain risk by diversifying suppliers, reducing dependence on external partners, and protecting proprietary knowledge.
The answer should be "A"
sould be A
Answer was A ,Single sourcing involves relying on a single supplier