Hewlett-Packard uses FedEx to handle all of its fulfillment orders from its retail web site.Once an order is placed at the HP web site,it is automatically transmitted to FedEx's Memphis headquarters.Orders are packaged at FedEx's warehouse and shipped by FedEx to the HP customer.This arrangement was set up as a solution to problems with distribution capacity that HP experienced prior to the implementation of this arrangement.Which strategy is HP using to adjust capacity to match demand?
A) Using part-time employees
B) Cross-training employees
C) Scheduling downtime during low periods
D) Performing maintenance and renovations
E) Outsourcing activities

Question

Quizplus · Accepted Answer

HP is outsourcing its fulfillment orders to FedEx in order to handle its distribution capacity issues.

Hewlett-Packard Uses FedEx to Handle All of Its Fulfillment Orders