A company uses two suppliers for the same critical component to reduce disruption risk. This is an example of:

The question describes using two suppliers for the same critical component to reduce disruption risk. This strategy is known as dual sourcing.

• C. Dual sourcing

Accepting hospitality from a bidder during a tender process creates a conflict of interest and compromises the fairness and integrity of the process. This is an ethical breach.

• B. Ethical risk

A performance specification focuses on what the product or service must achieve or do, rather than how it is made or what materials are used. "Produce 500 units per hour with zero defects" describes the desired outcome.

• C. Required outcome

When an organisation outsources a service, it chooses to purchase that service from an external provider rather than performing it internally. This is known as a "buy" decision.

• C. Buy decision

Comparing suppliers based on multiple criteria such as price, quality history, and risk exposure indicates a systematic and comprehensive approach to evaluation.

• B. Structured evaluation

A significant increase in a supplier's defect rate (from 2% to 8%) indicates a serious decline in quality performance. The most appropriate action is to formally address this issue with the supplier.

• B. Conduct performance review

The decision of whether to produce a component internally ("make") or purchase it from an external supplier ("buy") is specifically addressed by a make-or-buy analysis.

• A. Make-or-buy analysis