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A second supplier was more expensive but could protect production if the main supplier failed. Maintaining it is an example of which function?

Answer and explanation

Correct answer: Resilience-based supply risk management

Maintaining a backup supplier can cost more in normal times but reduces the risk of production stoppage during disruption. This is resilience-based supply risk management: the entrepreneur balances extra cost against continuity and recovery. It is not automatically wasteful, and pricing or customer segmentation is unrelated.

Related tags

Supply ResilienceRisk ManagementQualities And Functions Of An EntrepreneurEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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