A small firm's supplier can produce a component part with greater efficiency and volume.What should the firm do?
A) make the component part as needed
B) make a large quantity of the component part and keep it in stock
C) seek other suppliers
D) buy the component part from that supplier

Question

Quizplus · Accepted Answer

Buying the component part from the supplier who can produce it with greater efficiency and volume is the best choice as it will save the small firm time and money in production. Making the component part themselves or keeping a large quantity in stock may result in excess inventory or production inefficiencies. Seeking other suppliers may not guarantee finding one that can produce the component part with better efficiency and volume.

A Small Firm's Supplier Can Produce a Component Part with Greater