The most significant sourcing decision for a firm is
A)whether to locate a plant close to customers or locate a plant close to sources of raw materials or suppliers.
B)whether to use highly automate processes or manual labor.
C)whether to use traditional inventory methods or adopt a just in time approach to stocking.
D)whether to perform a task in-house or outsource it to a third party.

Question

Quizplus · Accepted Answer

The decision to perform a task in-house or outsource it to a third party can have a significant impact on a company's operations, cost structure, and competitiveness. Outsourcing can provide cost savings and access to specialized expertise, while in-house production can provide better control over quality and responsiveness. This decision should be carefully evaluated based on the company's core competencies, strategic goals, and overall cost-benefit analysis.

The Most Significant Sourcing Decision for a Firm Is