Pros and cons of having too many v/s too few suppliers in the supply chain. Concept Introduction: Suppliers are essential components of a supply chain, in fact of any organization. The organization needs to establish a policy about the number of suppliers or, order quantities to each supplier. Optimization of the number of suppliers for an item is dependent on many factors like the item itself, the characteristics of the available suppliers, capacity and logistics available to suppliers, finance of the company etc. This is a unique decision by every company, in fact for every critical item, though the general concept is to have a few reliable supplier.

Question

Want to see the full answer?

Answer 1

Question

Chapter 6.9, Problem 26P

Summary Introduction

Interpretation:Pros and cons of having too many v/s too few suppliers in the supply chain.

Concept Introduction:Suppliers are essential components of a supply chain, in fact of any organization. The organization needs to establish a policy about the number of suppliers or, order quantities to each supplier. Optimization of the number of suppliers for an item is dependent on many factors like the item itself, the characteristics of the available suppliers, capacity and logistics available to suppliers, finance of the company etc. This is a unique decision by every company, in fact for every critical item, though the general concept is to have a few reliable supplier.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

What is the best way to manage emotions and thoughts? How to work through Emotions and thoughts?

What are the emotions or stressful thoughts? What are the differences between them? How can we work through the emotions or stressful thoughts? How can we avoid or prevent emotions or stressful thoughts from happening or occurring? What are the obstacles?

Main Challenges at TechInnovateStrategic DirectionTechInnovate's board of directors is pushing for a more aggressive expansion into emerging markets, particularly in Africaand Southeast Asia. However, there's internal disagreement about whether to focus on these new markets or consolidatetheir position in existing ones. Sarah Chen favors rapid expansion, while some senior executives advocate for a morecautious approach.Ethical ConcernsThe company's AI algorithms have come under scrutiny for potential biases, particularly in facial recognition technology.There are concerns that these biases disproportionately affect minority groups. Some employees have voiced ethicalconcerns about selling this technology to law enforcement agencies without addressing these issues.Team Leadership and DiversityTechInnovate's leadership team is predominantly male and Western, despite its global presence. There's growing pressurefrom employees and some board members to diversify the leadership team to…