NSL Corporation produces and sells bookcases and magazine racks. Its production operation is organized into three parts: fabrication (where the wood and other raw materials are cut), assembly (where the cut materials are assembled into finished products), and painting (where the final products are painted and prepared for customers). NSL is considering outsourcing one of the three functions, each of which would have an equal financial effect on the corporation overall. Discuss why each of the following qualitative factors might be so important that it could override quantitative considerations for this decision:
a)Ability to ensure high quality
b)Timeliness of delivery
c)Whether NSL's managers consider the function to be a core competency

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The Answer of NSL Corporation produces and sells bookcases and magazine racks. Its production operation is organized into three parts: fabrication (where the wood and other raw materials are cut), assembly (where the cut materials are assembled into finished products), and painting (where the final products are painted and prepared for customers). NSL is considering outsourcing one of the three functions, each of which would have an equal financial effect on the corporation overall. Discuss why each of the following qualitative factors might be so important that it could override quantitative considerations for this decision:
a)Ability to ensure high quality
b)Timeliness of delivery
c)Whether NSL's managers consider the function to be a core competency

NSL Corporation Produces and Sells Bookcases and Magazine Racks