Which option describes a single-source supply strategy?

• A. One source of supply
• B. Several sources of supply
• C. Outsourced part of production
• D. Combination of all other 3 supply strategies to maximise the benefit of each

Answer: (A)

Single-source supply means relying on one supplier for a particular good or service. This approach can simplify coordination, strengthen the supplier relationship, and potentially reduce admin costs and lead times, sometimes enabling better terms through commitment or volume. But it concentrates risk: if that supplier fails or faces disruption, your supply is at risk. The idea of several sources describes a multi-sourcing approach, which spreads risk across multiple suppliers. Outsourcing is about who performs the work, not how many suppliers you use. A blended approach that combines strategies would not be single-source. So one source of supply best fits the single-source strategy.