Terrell Is Trying to Decide Whether to Concentrate His Purchases

question 55

Multiple Choice

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is

• A) insurance against interruptions caused by strikes.
• B) a particular supplier's superiority in product quality.
• C) knowing the customer's loyalty, the supplier may provide better prices and service.
• D) locating the best source in terms of price, quality, and service with each purchase.

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