Overall supply chain risk may be increased by implementing which of the following strategies?

Single sourcing concentrates the entire supply of a product with one supplier, creating a high level of dependency. If that supplier experiences any disruption (e.g., natural disaster, bankruptcy, quality failure), the entire supply chain for that product is severed. When this strategy is applied to the product that generates the highest profit, the financial impact of such a disruption is magnified, posing a significant threat to the company's revenue and profitability. This combination of high probability of disruption impact and high financial consequence dramatically increases overall supply chain risk.

B. Outsourcing products that are not well suited to a company's operations: This is a risk mitigation strategy, allowing a company to focus on its core competencies and leverage supplier expertise.
C. Identifying multiple sources for a product with the potential for supply chain disruption: This is a fundamental risk mitigation technique (dual or multi-sourcing) designed to decrease, not increase, supply chain risk.
D. Internally manufacturing products with high levels of technical intellectual property: This is a risk mitigation strategy to protect competitive advantage and maintain control over critical technology, thereby reducing risk.

1. APICS CSCP Learning System, Version 5.0, Module 1, Section C: Risk Management in the Supply Chain. This section details how sourcing strategies like single sourcing create dependency and increase vulnerability to disruptions.

2. Christopher, M. (2016). Logistics & Supply Chain Management (5th ed.). Pearson. Chapter 8, "Managing Risk in the Supply Chain," explains that a major driver of supply chain vulnerability is the focus on single sourcing for cost reduction, which exposes the firm to significant risk.