Selecting the most appropriate number of suppliers that a firm should use has been the subject of continuing debate. Discuss this statement, Consider the mentioned below and provide an example

Selecting the most appropriate number of suppliersa firm should use

has been the subject of continuing debate.

Internal considerations could influence the decision to use a single-source or a multiple-source approach.

Multiple sourcing decisionsupporters argue thathaving more thanone supplier increases the amount of competition, greater supply risk mitigation, and improved market awareness can arise.

Single sourcing decision supporters argue that purchase volume with a single supplier with the hopesof enjoying lowercosts per unitand increased cooperation and communication in the supply relationship.

However, single sourcingmight actually reducetheir alternatives and ultimately raise the price they pay.