Adam is the CEO of a company that makes steel products. He needs a steady supply of high-quality steel sheets as raw material, but wants to keep control of the supply chain and produce the most competitively priced products. The sheets are readily available from domestic and global sources. The costs for these sheets are very low (even after adding shipping charges) in three distant countries (A, B, and C), as compared to the domestic prices. What would be the best option for Adam?
A.
The sheets should be sole sourced from one supplier in any one country–A, B, or C.
B.
The sheets should be outsourced to a nearby domestic supplier, even if it is at a higher cost.
C.
The sheets should be multi-sourced from suppliers in the three countries–A, B, and C.
D.
The sheets should be made in-house.
E.
The sheets should be made by two suppliers in any two of the three countries–A, B, or C.
Answers: 2
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