Factors used to decide whether to outsource a part include ________.
A) the supplier's cost of direct materials
B) if the supplier is reliable
C) the original cost of equipment currently used for production of that part
D) past design costs used to develop the current composition of the part

Question

Quizplus · Accepted Answer

When deciding whether to outsource a part, one of the most important factors to consider is the reliability of the supplier. This is because outsourcing a part means relying on an external party to deliver the necessary quality and quantity of products, which can have a significant impact on a company's operations. While factors such as the cost of direct materials, the original cost of equipment, and past design costs may also be considered, they are generally secondary to ensuring that the supplier is dependable and able to meet the company's needs.

Factors Used to Decide Whether to Outsource a Part Include