APICS Certified Supply Chain Professional (CSCP) — Question 450

If the manufacture of a product requires specialized knowledge and capabilities, the company should:

Answer options

• A. see no difference whether it makes or buys the product.
• B. consider outsourcing as an option for product production.
• C. definitely outsource product production.
• D. retain internal product production.

Correct answer: B

Explanation

The correct answer is B because outsourcing can bring in the necessary specialized knowledge and capabilities that the company may lack. Option A overlooks the importance of expertise in production, while option C is too definitive and does not consider potential benefits of in-house production. Option D may limit the company’s ability to leverage external expertise.