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Operation Management GOP L2Sourcing strategiesOperational costsManagerial costs Strategic costsSourcing arrangementsSingle sourcing (one supplier supplying part)Advantages:Multiple sourcing (having more than one supplier providing same part)Advantages:Delegated sourcing strategy: having one supplier take responsibility for other related suppliersThe 75%-25% ruleRule: Supplier A gets 75% of the businessSupplier B 25% Advantages: obtain scale economies from supplier A .