Zanda Corp.had outsourced its production to a company located in Asia.Recently it decided to continue to outsource but bring the production back to a company located in the United States.This decision was likely made after Zanda:
A)Conducted a spend analysis.
B)Conducted a make or buy analysis.
C)Examined total cost of ownership.
D)Developed supplier certification processes.

Question

Quizplus · Accepted Answer

Examining the total cost of ownership (TCO) involves looking at all the costs associated with acquiring, operating, and disposing of a system or product. This likely influenced Zanda Corp.'s decision to move production back to the United States, as it would have considered factors beyond just the initial cost, such as shipping, quality, lead time, and potential risks associated with outsourcing overseas.