Question

Eastlake Furniture Company, a maker of Victorian furniture reproductions, uses only Trenton adhesives for its finely crafted products. The adhesive can bond wood just as well as hot-melt adhesives without damaging heat-sensitive areas, so it satisfies the needs of the company's craftspeople. Even though the Trenton adhesive is slightly more expensive than the hot melt glues offered by competitors, Trenton retains its clientele as it guarantees delivery just two days after an order is placed. This scenario illustrates that Eastlake Company is using ________ for its supply of adhesives.

Answer 1

Options:

A. Sole sourcing

B. Licensing

C. Franchising

D. Data mining.

Answer:

A. Sole sourcing

Explanation: Sole sourcing is a term used in procurement to describe a situation where only one supply exists for the supply of a particular material required for the production of a given product or service.

Sole sourcing can also be used to describe a situation where a company chooses to procure or source its materials from one particular supplier even at a higher cost.