Which supply strategy is defined as a combination of all other 3 supply strategies to maximise the benefit of each?

• 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: (D)

The idea being tested is using a blended sourcing approach that takes elements from different ways of procuring and combines them to get the best overall outcome. Each sourcing strategy has its advantages and downsides, and by mixing them you can tailor how you source different parts or components to fit their importance, volume, and risk.

Why this blended approach works well: relying on a single supplier can give you stability and savings but creates dependency and vulnerability if that supplier has issues. Using several sources reduces dependency and can drive competitive pricing, but it adds complexity and management cost. Outsourcing part of production can lower in-house burden and leverage external expertise, but you lose some control and require strong governance. Bringing these together allows you to assign the most suitable approach to each element—keep critical components with a trusted single source for reliability, use multiple sources for common or price-sensitive items, and outsource non-core activities to specialists—thereby maximizing the benefits of each strategy while balancing risk and control.

So the combined strategy is the best fit because it integrates the strengths of all three approaches rather than sticking to just one.