Economics · Supply Chain Management

Z plc sources a range of complex components from suppliers which are critical to the quality of Z plc's final product. Any disruption to the supply of these components will mean that Z plc cannot maintain its service levels to its own customers. In the purchasing of these components, which TWO of the following will NOT be appropriate components of Z plc's supply strategy? 1. Long-term partnership relations with key suppliers of the components 2. A small number of suppliers of the components 3. Outsourcing production of the product to low-cost countries 4. Consolidating purchases of the components and sourcing from a single supplier to reduce sourcing costs