When Deciding Whether to Make a Component Internally or to Outsource

question 340

Multiple Choice

When deciding whether to make a component internally or to outsource production, a company must:

• A) evaluate the landed cost of the component
• B) select the lowest-price source
• C) outsource only low-value components
• D) select the source with the shortest lead time

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Definitions:

Creativity

The capability to produce or identify concepts, options, or opportunities that can aid in resolving issues, engaging in communication with people, and providing amusement to both ourselves and others.

Low Tolerance

A reduced capacity or willingness to accept deviations from a standard or to endure difficult conditions or treatment.

Internal Locus

This concept describes individuals who believe they have control over their life events and outcomes, as opposed to being controlled by external factors.