Asked by Benjamin Etshim on May 07, 2024
Verified
In tailored sourcing,firms use a combination of two supply sources,
A) one focusing on cost but unable to handle uncertainty well,and the other focusing on flexibility to handle uncertainty,but at a higher cost.
B) one focusing on cost and able to handle uncertainty well,and the other focusing on flexibility to handle uncertainty,but at a higher cost.
C) one focusing on cost but unable to handle uncertainty well,and the other focusing on flexibility to handle uncertainty at a lower cost.
D) one focusing on cost and able to handle uncertainty well,and the other focusing on flexibility to handle uncertainty at a lower cost.
Tailored Sourcing
Procurement approach focusing on obtaining goods or services that are customized to meet specific needs or criteria of a business.
Supply Sources
Supply Sources are the origins from which goods, materials, or services are obtained, essential for production and operational processes in businesses.
Uncertainty
The state of having limited knowledge about an existing situation, making it difficult to predict outcomes accurately.
- Learn about the consequences that various strategies for obtaining supplies have on the flexibility and financial aspects of the supply chain.
Verified Answer
AH
Ayumi HumphriesMay 08, 2024
Final Answer :
A
Explanation :
Tailored sourcing involves using two supply sources: one that is cost-efficient but not adept at handling uncertainty, and another that offers flexibility to manage uncertainty but comes at a higher cost. This strategy allows firms to balance cost efficiency with the ability to respond to changes in demand or supply conditions.
Learning Objectives
- Learn about the consequences that various strategies for obtaining supplies have on the flexibility and financial aspects of the supply chain.