One contingency plan ABC could prepare for supply disruption of e-waste.

One contingency plan ABC could prepare for supply disruption of e-waste.

• A. Rely on a single supplier to keep costs low.
• B. Build relationships with multiple suppliers and keep safety stock where practical.
• C. Stop operations until supply returns.
• D. Increase prices to handle disruption without changing suppliers.

Answer: (B)

Contingency planning in supply chains means lining up prepared options so operations can keep going even if a disruption hits. For e-waste, having multiple suppliers and some safety stock gives resilience: if one supplier faces a shutdown or delays, others can step in, keeping collection and processing moving. Safety stock acts as a buffer so demand can be met while fresh deliveries catch up. This combination reduces the risk of a stockout and avoids costly shutdowns or forced price hikes. Relying on a single supplier creates a single point of failure, stopping operations is impractical, and simply raising prices doesn’t solve the disruption or ensure material comes in.

Contingency planning in supply chains means lining up prepared options so operations can keep going even if a disruption hits. For e-waste, having multiple suppliers and some safety stock gives resilience: if one supplier faces a shutdown or delays, others can step in, keeping collection and processing moving. Safety stock acts as a buffer so demand can be met while fresh deliveries catch up. This combination reduces the risk of a stockout and avoids costly shutdowns or forced price hikes. Relying on a single supplier creates a single point of failure, stopping operations is impractical, and simply raising prices doesn’t solve the disruption or ensure material comes in.