A manufacturer experiences frequent changes in product technology and market preferences, resulting in new product introductions each year. Which of the following sourcing strategies would be most appropriate?
With frequent changes in product technology and market preferences, having multiple sourcing options allows the manufacturer to have flexibility and agility in adapting to changes. It reduces the risk of relying solely on one supplier or sourcing option, which could lead to potential disruptions if changes occur rapidly. Multiple sourcing provides the manufacturer with more options, diversifies supply sources, and allows for better negotiation power in terms of pricing and terms.
In a situation where technology and market preferences are frequently changing, a more adaptable and flexible approach like Multiple Sourcing (B) can be more suitable. This strategy allows the manufacturer to work with multiple suppliers who may specialize in different technologies or market segments, enabling quicker responses to changes and reducing the risk of dependence on a single supplier.
It is more difficult to adapt to changing needs when multiple suppliers are involved.
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