What is a multiple supply strategy?

What is a multiple supply strategy?

• A. One source of supply
• B. Several sources of supply
• C. Outsourced part of production
• D. Combination of all other 3 supply strategies to maximise the benefit of each

Answer: (B)

Multiple supply strategy means sourcing the same materials or components from more than one supplier. The goal is to spread risk and improve resilience—if one supplier has a disruption or cannot meet demand, another can fill the gap. It also allows for competitive pricing and better supplier performance through choice. While it adds complexity in management and coordination, the benefit of reduced dependency and continuity of supply is the key reason this approach is chosen. The idea described by a single source is the opposite, outsourcing part of production relates to make-or-buy decisions rather than the number of suppliers, and combining all strategies goes beyond the specific notion of sourcing from multiple suppliers.

Multiple supply strategy means sourcing the same materials or components from more than one supplier. The goal is to spread risk and improve resilience—if one supplier has a disruption or cannot meet demand, another can fill the gap. It also allows for competitive pricing and better supplier performance through choice. While it adds complexity in management and coordination, the benefit of reduced dependency and continuity of supply is the key reason this approach is chosen. The idea described by a single source is the opposite, outsourcing part of production relates to make-or-buy decisions rather than the number of suppliers, and combining all strategies goes beyond the specific notion of sourcing from multiple suppliers.