Which of the Following Is Not a Disadvantage of Outsourcing

question 28

Multiple Choice

Which of the following is not a disadvantage of outsourcing the logistics function:

• A) Logistics providers can use their expertise, assets and experience to gain superior economies of scale and scope
• B) Problems of meshing manufacturer-logistics provider organizations and corporate cultures
• C) Logistics provider schedules are not consistent with manufacturer needs
• D) After sales service is essential to maintain the manufacturer's competitive advantage

---

Definitions:

Cobb-Douglas Production Function

Production function of the form q = AK^aL^b, where q is the rate of output, K is the quantity of capital, and L is the quantity of labor, and where A, a, and b are constants.

Optimal Input Demands

The combination of inputs that minimizes the cost of producing a given output or maximizes output for a given cost.

Expenditures

Money spent on goods, services, or other expenses.

Scale Economies Index

A measurement that assesses the advantages a business gains due to the scale of its operation, typically resulting in reduced costs per unit as production increases.