Dependency Matrix

Question 1

Lopsided dependency - Buyer

Answer 1

Supplier is less responsive
May respond to others first
Response: Choose multiple suppliers to reduce dependence

Question 2

Low Mutual Dependency Both

Answer 2

Market choose cheapest price have competing bids

Question 3

High Mutual Dependency

Answer 3

The supplier will be more responsive and more flexible
both sides will have more motivation to reduce costs and improve designs and quality
Use single sourcing to build relationship

Question 4

Lopsided Dependency - Producer

Answer 4

Supplier may not have the recourses / flexibility6 to adjust to the changes in demand or lead time
Choose multiple producers to spread demand
i.e. sport obermeyer