A company currently produces a major component and is considering purchasing the component from a foreign supplier. Assuming they were to purchase from the foreign supplier, which of the following would most likely impact the domestic manufacturing operations?

Question

Quizplus · Accepted Answer

Fluctuations in supplier lead time can have a significant impact on the domestic manufacturing operations. If the supplier experiences delays or provides inconsistent lead times, it can disrupt the flow of production and cause delays in delivering the finished product to customers. The direct cost of the component, accuracy of supplier forecasting, and transportation cost from the supplier may also have an impact, but they are less likely to directly affect the manufacturing operations.

A Company Currently Produces a Major Component and Is Considering