Replacing an Outsource Vendor, Who Is Integrated into the Business

question 104

True/False

Replacing an outsource vendor, who is integrated into the business, can be done without a lot of expenditure or duplication of effort.

---

Definitions:

Special Order

A special order refers to a one-time purchase order often at a discounted price, usually for large quantities that is outside the normal scope of operations.

Direct Labor Hours

Total working hours logged by employees who are intimately involved with the production operations.

Profitable Use

The utilization of resources or assets in a manner that generates a significant positive return or profit.

Insufficient Capacity

A situation where a company does not have enough resources, such as manpower or machinery, to meet current or future production demands.