Contract manufacturing:

Question

Quizplus · Accepted Answer

Contract manufacturing allows for greater economies of scale, as the firm can partner with a manufacturer who specializes in producing goods at a lower cost due to their efficiencies in production. This can result in reduced costs for the firm and increased competitiveness in the market. The other options are not necessarily true; in-house capabilities may not be enhanced if the firm is outsourcing core functions, committing to long-term capital investments could limit flexibility, and decreased organizational responsiveness is not necessarily a benefit of contract manufacturing.

Contract Manufacturing