Which statement best describes a primary objective of dual sourcing?

• A. To reduce supply disruption risk and improve resilience.
• B. To increase supplier dependence.
• C. To minimize order quantities.
• D. To centralize procurement in a single country.

Answer: (A)

Dual sourcing is about guarding against supply interruptions by having two capable suppliers for critical items. If the primary supplier faces a disruption, quality issue, or capacity shortfall, the backup supplier can step in, helping to keep production running and customer service intact. This diversification directly reduces the risk of a single point of failure and enhances the supply chain’s ability to absorb shocks, which is why reducing disruption risk and improving resilience is the best description. It’s not about increasing supplier dependence—quite the opposite, it lowers dependence on any one source. It doesn’t aim to minimize order quantities, since total demand and lot sizing drive order volumes, and splitting orders can even complicate planning. And it isn’t about centralizing procurement in one country; dual sourcing typically leverages geographic and supplier diversification to further reduce country- or region-specific risks.