Outsourcing is an inventory control procedure where a red line is drawn around the inside of an inventory-stocked bin to indicate the level of inventory at which an order for new raw materials should be initiated.

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Quizplus · Accepted Answer

Outsourcing is not an inventory control procedure. The statement describes a technique called a reorder point, which is a part of inventory management.

Outsourcing Is an Inventory Control Procedure Where a Red Line