The replacement of internal capacity and production with that of a supplier's is known as:
A) Capacity buying
B) Outpartnering
C) Outsourcing
D) Capacity cushioning

Question

Quizplus · Accepted Answer

Outsourcing refers to the practice of obtaining goods or services from an external supplier rather than producing them internally. This can involve the replacement of internal capacity and production with that of a supplier. Option A (Capacity buying) and Option D (Capacity cushioning) are not accurate terms to describe this practice. Outpartnering (Option B) is not a commonly used term in business and does not accurately describe this practice.

The Replacement of Internal Capacity and Production with That of a Supplier's