A drink manufacturer finds setting up a plant to make its own bottle caps expensive and technically difficult. Which of the following will be most helpful in solving the manufacturer's problem?
A)outsourcing
B)achieving economies of scale
C)lowering input costs
D)increasing bargaining power
E)going for a vertical integration with a distributor

Question

Quizplus · Accepted Answer

Outsourcing would allow the manufacturer to obtain bottle caps from an existing supplier, eliminating the need to set up a costly and technical production process for bottle caps. This would save the manufacturer time and resources while still allowing them to produce their product with high-quality bottle caps.

A Drink Manufacturer Finds Setting Up a Plant to Make