Which of the following is a disadvantage of using an outside supplier?
A)Employees may have to be laid off if production is outsourced.
B)The supplier assumes the risk of obsolete inventory.
C)The supplier may provide a cost savings due to increased efficiencies.
D)The supplier may have better quality control.

Question

Quizplus · Accepted Answer

Outsourcing production to an outside supplier may result in the need to lay off employees who were previously responsible for that production, which can impact morale and cause other issues.

Which of the Following Is a Disadvantage of Using an Outside