Which of the Following Is Not Typically True of Dual

question 34

Multiple Choice

Which of the following is not typically true of dual sourcing using the "70-30" approach?

• A) 70 percent of the volume is awarded to one supplier, 30 percent to a second supplier
• B) Economies of scale are obtained from the "big supplier"
• C) Frequently used when time to market is critical
• D) The "little supplier" provides competition and a backup in case of emergencies
• E) When the "big supplier" fails to perform the percentages may be reversed by the buyer

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Definitions:

Feedforward Control

A proactive method of control in management that focuses on identifying and preventing potential problems before they occur.

Consumer

An individual who purchases goods and services for personal use.

Alternatives

Different options or choices available in any given situation, allowing for flexibility in decision-making processes.

Activities

Engagements or tasks that individuals or groups undertake, often with a specific purpose or objective in mind.