Using Multiple Suppliers and Suppliers That Have Flexibility in Capacity

question 35

Multiple Choice

Using multiple suppliers and suppliers that have flexibility in capacity to respond to demand changes is a mitigation strategy for ______.

• A)capacity risk
• B)demand risk
• C)performance risk
• D)strategy risk

---

Definitions:

Production Possibilities Frontier

A graph that illustrates all the highest production options for two or more products, based on a specific set of resources, such as labor and materials.

Trade-Offs

The concept of giving up one thing in return for gaining another, often used in the context of making decisions that involve a compromise.

Policy Decisions

Choices made by governments or organizations regarding laws, regulations, and actions to achieve specific economic or social goals.

Management Information System

An organized approach to collecting, storing, and processing data to provide useful information for decision-making.