Identify the Advantages and Disadvantages of Using the "Few Suppliers

question 12

Essay

Identify the advantages and disadvantages of using the "few suppliers" sourcing strategy.

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Definitions:

Financing Activities

Activities that result in changes in the size and composition of the equity capital and borrowings of a company.

Operating Activities

The day-to-day actions taken by a business, such as selling products, managing costs, and paying bills, that are essential to running the business and generating income.

Production

The process of creating, growing, manufacturing, or improving goods and services.

Purchase Of Merchandise

The acquisition of goods intended for sale by a business, recorded as an increase in inventory.