Question: ACME has a specific sub - assembly that has a highly - used component that can be obtained from many suppliers globally. The sub -
ACME has a specific subassembly that has a highlyused component that can be obtained from many suppliers globally. The subassembly comprises a small portion of the cost of the product. The suppliers are located in Japan, India, southern China, and the United States and supply most of the large laser equipment companies globally. Management considers this component to have a relatively low Supply Risk because of the many suppliers available and their multiple locations. Their best supply strategy is to focus onGroup of answer choicesGoing to bid among the suppliers to obtain an assured supply at the lowest cost per unit.Increase their hedge stock of inventory to mitigate supply disruption risk.Spread their spend across multiple suppliers in the different countries.Designing out the key component even if it means falling behind in technology and sales.Work with the Japanese supplier in increasing process automation
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
