Supply Chain Management Professional (SCMP) · Question
Which of the following is a common risk associated with single sourcing?
Single sourcing, while offering potential benefits, poses a significant risk of supply disruption if the sole supplier faces issues, and can lead to less compet
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Question: Which of the following is a common risk associated with single sourcing?
Answer options:
- Reduced economies of scale. ✅ Potential for supply disruption and lack of competitive pricing.
- Increased administrative burden.
- Higher transportation costs.
Correct answer: Potential for supply disruption and lack of competitive pricing.
Explanation: Single sourcing, while offering potential benefits, poses a significant risk of supply disruption if the sole supplier faces issues, and can lead to less competitive pricing over time.
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