Question

Homespar is an e-commerce site that sells home décor and kitchenware. It sources all its wooden articles, such as coasters, serving trays, and photo frames, from a rural carpentry firm because the firm charges much lower prices than other carpentry firms. The firm is also reliable in terms of quality and delivery time. In the context of the specific environment, which of the following concepts does this scenario best illustrate?

Answer 1

Answer:

The scenario that best illustrates is supplier dependence.

Explanation:

Supplier Dependence is the degree to which a company relies on the supplier. It relies on that particular supplier because the product of the supplier is quite important to that company and company finds it difficult to find other resources for that product.

In the given scenario, Home spar sources its wooden articles from a rural carpentry firm. This firm has good quality products and charges Home spar lower than other firms. It also delivers its products on time. Thus, this concept illustrates supplier dependence as Home spar is dependent on rural carpentry firm for its products.