Question

10. As a global supply chain grows due to more outsourcing, the probability of a disruption increases because:

A. It is never a good idea to outsource production

b. Most outsourced suppliers have unreliable delivery

c. More opportunities will exist for a disruption

d. The quality of outsourced production is always worse tha the quality of in house production

Answer 1

Growth of global supply chain due to increased outsourcing help the companies in cutting cost and extending markets but also expose then to greater magnitude of adverse events.

These events can take form of natural disasters or adverse political or social events in a country or group of countries forming part of global supply chain.

So, more opportunities will exist to cause a disruption which in result increases the probability of disruption.

Hence, the correct answer is the option (c).