APICS Exam CSCP Topic 4 Question 84 Discussion

Actual exam question for APICS's APICS Certified Supply Chain Professional exam

Question #: 84
Topic #: 4

[All APICS Certified Supply Chain Professional Questions]

Which of the following risks is associated with outsourcing?

AReduction of capital investment

BEconomies of scale

CConflicting objectives

DIncreased flexibility

Show Suggested Answer

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.

by Bette at Apr 12, 2024, 12:04 AM

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Kati

11 days ago

Haha, Lenna's got a point. Outsourcing is like playing a high-stakes game of tug-of-war. You better hope your provider's goals are perfectly aligned with yours, or you're in for a world of pain.

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Lenna

13 days ago

Oh come on, Ilene. Economies of scale? That's like Outsourcing 101. I think the real risk here is the conflicting objectives. You're putting a critical part of your business in someone else's hands, and that can be a recipe for disaster.

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Ilene

14 days ago

You know, I'm actually going to go with B on this one. Outsourcing can help you take advantage of economies of scale that you might not be able to achieve on your own. That could be a major benefit.

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Tonette

15 days ago

I don't know, guys. I think D might be the better answer here. Outsourcing allows you to be more flexible in how you allocate resources and scale up or down as needed. That seems like a pretty significant advantage to me.

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Rutha

17 days ago

I'm leaning towards C as well. When you outsource, the objectives of the outsourcing provider may not align perfectly with your own business goals. That can really create some tension and challenges down the line.

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Doug

19 days ago

This is a tricky one. I'm not quite sure if I should go with C or D. Outsourcing can definitely lead to conflicting objectives between the company and the outsourcing provider, but it can also increase flexibility in how the work is done. Hmm, this is a tough call.

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