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Outsourcing Plan Essay

1. Outsourcing has become a way to increase an organization’s flexibility to meet rapidly changing market conditions, focus on core competencies and develop competitive advantage. As a result, the need for SM has intensified and positioned Supply Managers as agents of strategic change critical to supply chain success.

A. True

2. Outsourcing decreases an organization’s flexibility to meet rapidly changing market conditions, but it can usually reduce total costs in the long-term

B. False

3. Early supply management involvement is an approach in supply management to bring the expertise and collaborative synergy of suppliers into the design process.

A. True

4. The strategic sourcing plan should be developed in a collaborative environment that includes all relevant functional area representatives and supply chain members.

A. True

5. Foreign governments never impose countertrade requirements.

B. False

6. Statutory rates are full rates for tariffs.

A. True

7. Which of the following is not a strategic issue in making the outsourcing decision?

A. The issue of short-term vulnerabilities.

8. Which of the following is a consideration that favors buying a product?

B. Multiple source policy

9. Which of the following is not one of the conditions demanding negotiation?

C. Market must consist of adequate number of sellers.

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