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When only one supplier is used despite the existence of multiple suppliers, what type of supplier is structured?

  1. Single-source supplier

  2. Sole-source supplier

  3. Multisourcing

  4. Purchase requisition

The correct answer is: Single-source supplier

The correct choice is the single-source supplier. This term refers to a situation where a company chooses to rely on one supplier for a particular part or product, despite the availability of other suppliers. This strategy can streamline procurement processes, foster relationships with suppliers, and may simplify logistics. Choosing a single-source supplier can have advantages, such as potential cost savings from bulk purchasing, consistent quality, and better collaboration. However, it also comes with risks, like reliance on just one source for critical materials. Understanding this context helps clarify the implications of working with a single-source supplier as part of supply chain management strategies. The other options represent different concepts. A sole-source supplier implies that there is only one supplier available for a product, with no alternatives possible; this is a more restrictive scenario than what is described with a single-source supplier. Multisourcing involves using multiple suppliers for the same product to increase flexibility and mitigate risks, which contrasts with the single-source approach. A purchase requisition is a document used to request the purchase of goods or services and does not pertain to the structure of supplier relationships.