Question

How can a firm best protect itself against an interruption in the supply of parts?

a. Select suppliers through a competitive bidding process.
b. Maintain more than one supply source.
c. Use suppliers from the city where the firm is located.
d. Transport the parts in its own transportation vehicles.

Answer 1

A firm can protect itself against an interruption in the supply of parts by maintaining multiple supply sources, using its own transportation vehicles, and selecting suppliers through a competitive bidding process.

Step-by-step explanation:

There are several ways that a firm can protect itself against an interruption in the supply of parts:

1. Maintain more than one supply source: By having multiple suppliers, a firm can ensure that it has alternative sources of parts in case one supplier is unable to deliver.
2. Transport the parts in its own transportation vehicles: By using its own transportation vehicles, a firm can have more control over the delivery process and reduce the risk of delays caused by external factors.
3. Select suppliers through a competitive bidding process: By using a competitive bidding process, a firm can choose suppliers that offer competitive prices, quality, and reliability.