Exam CSCP topic 1 question 200 discussion

The action most likely to increase total supply chain risk is D. Reducing the supplier base for commodity-type components. Explanation: Reducing the supplier base for commodity-type components means relying on fewer suppliers for essential materials. While this can potentially lead to cost savings and improved efficiency, it also introduces a significant risk. If one of these fewer suppliers experiences a disruption (e.g., natural disaster, production issues, strikes) it can significantly impact the entire supply chain, potentially causing production delays and shortages. This dependence on a smaller number of suppliers makes the supply chain more vulnerable to disruptions.

Reducing the supplier base for commodity-type components increases dependency on a smaller number of suppliers. This creates a single point of failure, making the supply chain more vulnerable to disruptions such as supplier bankruptcies, production delays, or geopolitical issues. - A diversified supplier base helps mitigate risks by providing alternative sources of supply in case of disruptions. The other options are less likely to increase supply chain risk:

Expanding operations to multiple locations increases total supply chain risk because it introduces additional complexities and uncertainties in managing the extended supply chain. Each location may have its own set of risks, such as transportation disruptions, regulatory compliance issues, labor disputes, and geopolitical risks, which can impact the overall performance and resilience of the supply chain.

why not B?