Question

With outsourcing being increased, this results in

		An Increase in spending on supply-related activities
		A Decrease of importance of inventory management
		Lower quality levels
		All the above
		None the above

Answer 1

outsourcing is a way to increase an organization's flexibility to meet rapidly changing market conditions, focus on core competencies and develop competitive advantage

Outsourcing can enable Leveraging of the supplier's expertise, Increases in innovation

Outsourcing results in lower staffing levels, reduced costs, more flexibility

So Ans is e) None of the above.

Because

a) Outsourcing reduces cost

b) Outsourcing can enable increase in innovation.

c) It improves quality level.