Maintaining Multiple Suppliers for Each Item Can Actually Increase the Probability

question 35

True/False

Maintaining multiple suppliers for each item can actually increase the probability and level of supply base risk.

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Definitions:

Total Cost of Ownership

The purchase price of an asset plus the costs of operation, considering all financial aspects of acquiring, operating, and maintaining it over its lifetime.

Competitive Advantage

A unique attribute or condition that allows an organization to outperform its competitors, potentially leading to greater sales or margins.

Geographical Location

The physical place or position of a person or thing as determined by its coordinates on the Earth's surface.

Purchased Material

Items or goods a company buys from external suppliers for use in its manufacturing process.