Icarus Inc.manufactures fighter planes for the government.It made a strategic decision to outsource the production of wings and turbines to another firm for the purpose of reducing production cost and development time by two years.However,the outsourcing provider developed the planes' wings and turbines using low-grade material,which led to Icarus Inc.losing its contract with the government.The loss of time and revenue was non-amendable and the company was closed down eventually.Which of the following issues associated with outsourcing best describes the cause of Icarus Inc.shutting down?

Question

Quizplus · Accepted Answer

The outsourcing provider used low-grade material, which led to quality problems in the wings and turbines of the fighter planes. This caused Icarus Inc. to lose its contract with the government and ultimately shutdown.