Exam L4M4 Topic 3 Question 160 Discussion

Actual exam question for CIPS's L4M4 exam
Question #: 160
Topic #: 3
A supplier operates in a monopolistic market where the threat of entry is low. The product that they offer is key in manufacturing certain types of submarines and there is no known substitute for the product at present.
What type of sourcing relationship is a buyer likely to have with this supplier?

Suggested Answer: B Vote an answer

This is sole sourcing as there is only one supplier in the marketplace.
Be careful not to confuse single sourcing and sole sourcing. Single sourcing is when a buyer chooses to work with only one supplier (usually to achieve economies of scale), sole sourcing, on the other hand, is when the buyer doesn't have a choice- they work with one supplier because there is only one supplier in the market.
Types of sourcing is a key concept for this exam.

by Maria at Sep 18, 2025, 12:39 AM

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