Question: Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a

Terrell is trying to decide whether to concentrate his purchases with one supplier or diversify with two or three. One factor in favor of a single supplier is

a particular supplier's superiority in product quality.

locating the best source in terms of price, quality, and service with each purchase.

knowing the customer's loyalty, the supplier may provide better prices and service.

insurance against interruptions caused by strikes.

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