APICS Certified Supply Chain Professional (CSCP) — Question 59

Overall supply chain risk may be increased by implementing which of the following strategies?

Answer options

• A. Single sourcing a product that makes the highest annual profit
• B. Outsourcing products that are not well suited to a company's operations
• C. Identifying multiple sources for a product with the potential for supply chain disruption
• D. Internally manufacturing products with high levels of technical intellectual property

Correct answer: A

Explanation

Choosing a single supplier for a highly profitable product can increase supply chain risk because it creates dependency on that one source. If that supplier faces issues, it could halt production or increase costs. The other options generally involve strategies that can mitigate risk or are less likely to cause significant disruption.