Supply Chain Management Professional (SCMP) · Question
What is the primary risk associated with 'single sourcing' a critical component?
Single sourcing creates high dependency, making the buyer vulnerable to supply disruptions if that supplier faces issues.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
Question: What is the primary risk associated with 'single sourcing' a critical component?
Answer options: ✅ High dependency on one supplier, increasing vulnerability to disruptions.
- Reduced negotiation leverage with the supplier.
- Increased administrative costs due to managing a single supplier.
- Difficulty in achieving economies of scale.
Correct answer: High dependency on one supplier, increasing vulnerability to disruptions.
Explanation: Single sourcing creates high dependency, making the buyer vulnerable to supply disruptions if that supplier faces issues.
Start free practice for Supply Chain Management Professional (SCMP)
200 questions · no signup required · 40 free questions per day
More about Supply Chain Management Professional (SCMP)
More for Supply Chain Management Professional (SCMP) candidates
Ready to practice?
Free, no signup required. Build a wrong-question list as you go.
Start Free Supply Chain Management Professional (SCMP) Practice →Related courses
Other Canadian certifications candidates often prepare for alongside this one.