A Johannesburg electronics importer faces repeated disruptions from its main Vietnamese supplier due to political unrest. Management is debating whether to add a second supplier in South Korea or to increase safety stock in South Africa. Based on a dual sourcing strategy, the suggestion to management would be to:

Question

Answer

Purchase larger volumes from the Vietnamese supplier to secure preferential terms.

Answer

Negotiate a fixed exchange rate to stabilise input costs.

Answer

Increase stockholding in Johannesburg to buffer against disruptions.

Answer

Add a South Korean supplier to share volume with the Vietnamese supplier.

Crowdly

A Johannesburg electronics importer faces repeated disruptions from its main Vie...

Want instant access to all verified answers on cems.myexams.unisa.ac.za?