Limiting the Number of Suppliers When Outsourcing Is

question 118

Multiple Choice

Limiting the number of suppliers when outsourcing is

• A) an unsuitable long-term strategy, as having a large number of suppliers will allow the company to get the lowest prices at the highest quality.
• B) a suitable long-term strategy, as the company has more direct influence and control over the quality, cost, and delivery performance of a supplier if the company has a major portion of that supplier's volume of business.

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