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APICS Exam CSCP Topic 3 Question 88 Discussion
Actual exam question for
APICS's
APICS Certified Supply Chain Professional exam
Question #: 88
Topic #: 3
[All APICS Certified Supply Chain Professional Questions]
Topic #: 3
Which of the following risks is associated with outsourcing?
Suggested Answer:
C
According to the APICS CSCP - Supply Chain Management Certification, outsourcing is the process of transferring some or all of the activities or functions of a firm to an external provider or supplier. Outsourcing can have many benefits, such as reducing capital investment, achieving economies of scale, increasing flexibility, and accessing specialized skills or technologies. However, outsourcing also involves some risks, such as conflicting objectives between the buyer and the supplier, loss of control over quality or delivery, loss of core competencies or competitive advantage, increased dependency or vulnerability, or ethical or social issues.
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