Exam 14: Outsourcing as a Supply-Chain Strategy

Which country should the firm choose for production using an unweighted factor method if high scores indicate low risk? Country Labor Currency Quality Canada 7 7 10 America 9 8 6 Mexico 5 10 9 China 3 6 8

What permits CEOs, who prefer short-term planning and are interested only in bottom-line improvements, to use the outsourcing strategy to make quick gains at the expense of longer-term objectives?

The theory of competitive advantage states that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.

What is the practice of moving a business process to a foreign country but retaining control of it?

Outsourcing manufacturing is also known as __________.

A purchasing firm should not include its home country when conducting a country risk assessment.

Advantages of outsourcing do not include

A company is deciding between 2 countries to locate its call center. A: Which country is preferred by an un-weighted method if high scores indicate low risk. B: Suppose a consultant recommended that Factor 2 have its weight doubled while Factor 3 should have its weight quadrupled. Which country is best now using a weighted method? Country Factor 1 Factor 2 Factor 3 A 10 7 4 B 5 8 6

Offshoring is the practice of moving a business process to a foreign country but retaining __________.

Whatever the outsourced product or service, agreements must specify ongoing __________ and expected __________.

Outsourcing is simply an extension of the long-standing practice of

The factor-rating method is an excellent tool for dealing with both __________ and __________ problems.

Which of the following metrics is most likely used in evaluating an outsourced call center but not a manufacturing process?

Which of the following is not an advantage of outsourcing?

Identify several risks in outsourcing.

The term renewal has been created to describe the return of business activity to the purchasing firm.

Research indicates that of all the reasons given for outsourcing failure, the most common is that the decision was made without sufficient understanding of the options through analysis.

__________ is the practice of choosing an external provider in the home country or in a nearby country.

What term has been created to describe the return of business activity to the purchasing firm?

Describe the difference between outsourcing and offshoring.