APICS Certified Supply Chain Professional (CSCP) — Question 483

Which of the following risks is associated with outsourcing?

Answer options

• A. Reduction of capital investment
• B. Economies of scale
• C. Conflicting objectives
• D. Increased flexibility

Correct answer: C

Explanation

The correct answer is C, as conflicting objectives can arise when different parties have varying goals and priorities, potentially leading to misalignment in the outsourcing relationship. Options A and B refer to benefits rather than risks, while D describes a positive aspect of outsourcing rather than a potential risk.