Jean-Michel Is the CEO of Kronos Timepieces, a Retailer and Manufacturer

Jean-Michel is the CEO of Kronos Timepieces, a retailer and manufacturer of fashion watches and watch accessories. The company, which was founded in 1925, is based in Switzerland and employs around 1,000 people in five countries. It currently sells its watches in 27 countries, with a recent expansion into several Middle Eastern and far Eastern countries. Kronos has decided to introduce a lower-priced unisex wristwatch. Jean-Michel has been considering contracting a brand new factory located in Singapore to manufacture the lower-priced line of wristwatches, rather than using Kronos' older, main factory, which is located in nearby Grenchen. Which of the following factors best supports Jean-Michel's decision to outsource production of the watches?

A) The company's ability to rapidly and reliably deliver its watches will be increased by the state-of-the-art facilities in the Singapore factory.
B) The manufacture of watches is standardized and the company is sufficiently well-established, making outsourcing an attractive option.
C) Automation can often achieve significant labor cost savings, increasing the advantage of moving production abroad.
D) The current supply chain is not as highly efficient and routine as it could be; using the Singapore factory could address that problem.
E) Even though Kronos will incur additional costs of sending staff from Switzerland to manage the Singapore factory, costs will be lower in the long run.