Question

which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? which sourcing strategy would typically be used for items with low profit margins, relatively stable demand, and high levels of competition? multi-source single source sole source

Answer 1

The sourcing strategy that would typically be used for items with low profit margins, relatively stable demand, and high levels of competition is option A. multi-source.

What is a multi-source strategy?

Multi-source strategy is otherwise known as multiple source strategy. Multi-source strategy is an outsourcing strategy whereby goods and services are contracted to several suppliers required to execute the business instead of using traditional single source strategy.

Therefore, the sourcing strategy which specifically employee for low profit margins, with relatively stable demand, and high levels of competition is multi-source strategy.

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