Which of the following involves arranging for other organizations in the supply chain to perform functions that were previously performed internally?
A) horizontal integration
B) pre-sourcing
C) vertical disintegration
D) outsourcing

Question

Quizplus · Accepted Answer

Outsourcing involves arranging for other organizations in the supply chain to perform functions that were previously performed internally. Horizontal integration refers to the merging of companies that are in the same industry and at the same stage of production. Pre-sourcing is a term often used in procurement to describe the activities undertaken before the actual sourcing of goods or services. Vertical disintegration involves breaking up a vertically integrated firm into smaller entities that specialize in different stages of the production process. Therefore, the best choice in this case is D.

Which of the Following Involves Arranging for Other Organizations in the Supply