The extruded film used in PlastiPharm's medical device bags is by far the largest component in the company's inventory. If the company ran out of film and production shut down, the company would lose millions of dollars a day. Developing a new supplier is a long and tedious process in which ISO certifications are reviewed, quality agreements with the supplier's vendors are scrutinized, delivery records are examined, and audits of the supplier's process are conducted to determine how at risk the supplier is. Why is it necessary for the company to go to all this trouble to have several suppliers for the film? Having different suppliers lets the company reduce the need it has for a long-term relationship with any one of them. Multiple suppliers allow the company to expand its network and potentially sell in multiple markets previously untapped. Having multiple suppliers increases flexibility in getting the film in case one of the suppliers cannot or does not meet the demand. Having different suppliers allows the company to purchase film in different parts of the country and support the economy there