Asked by Karan Patel on Jun 10, 2024
Verified
Identify the advantages and disadvantages of using the few suppliers approach.
Few Suppliers Approach
A market condition characterized by a small number of suppliers, often leading to less competition and potentially higher prices.
- Familiarize yourself with the merits and limitations of assorted transportation methods.
- Understand the advantages and factors to consider when outsourcing logistics tasks.
Verified Answer
BP
Barbara PetilloJun 16, 2024
Final Answer :
Advantages: long-term suppliers better understand the firm; suppliers may gain economies of scale, trust; and willingness to participate in JIT. Disadvantages: concern about trade secrets and suppliers venturing out; high cost of changing partners; and risk of poor supplier performance.
Learning Objectives
- Familiarize yourself with the merits and limitations of assorted transportation methods.
- Understand the advantages and factors to consider when outsourcing logistics tasks.
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