APICS Certified Supply Chain Professional (CSCP) — Question 211

In a make-or-buy decision, if the product is modular and the company is dependent on knowledge and capacity, outsourcing most likely will be:

Answer options

• A. company policy
• B. viewed as a way to reduce costs
• C. considered necessary
• D. considered risky

Correct answer: C

Explanation

The correct answer is C because when a company depends on specific knowledge and capacity for a modular product, outsourcing becomes essential to meet those needs. Options A, B, and D do not accurately reflect the necessity of outsourcing in this context, as they focus on policy, cost reduction, and risk rather than the critical need for expertise.