APICS Exam CSCP Topic 3 Question 88 Discussion

Actual exam question for APICS's CSCP exam

Question #: 88
Topic #: 3

[All CSCP 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 Laura at May 20, 2024, 02:23 PM

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Mona

6 months ago

Haha, outsourcing risks? I'd say the biggest risk is accidentally outsourcing your entire business to the wrong provider. That's a real 'oops' moment!

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Shonda

6 months ago

C) Conflicting objectives

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Carissa

6 months ago

A) Reduction of capital investment

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Lindsey

6 months ago

Conflicting objectives can definitely be a risk when outsourcing.

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Ettie

6 months ago

D) Increased flexibility

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Laurel

6 months ago

Accidentally outsourcing your entire business? That would be a disaster!

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Elvera

6 months ago

C) Conflicting objectives

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Bernardine

6 months ago

A) Reduction of capital investment

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Leigha

7 months ago

Hmm, I think D) Increased flexibility is the way to go. Outsourcing gives you the ability to scale up or down as needed.

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Dulce

7 months ago

I'd go with A) Reduction of capital investment. Outsourcing allows companies to shift from CapEx to OpEx, which can be a major benefit.

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Fausto

7 months ago

C) Conflicting objectives is definitely the right answer here. Outsourcing can lead to misaligned goals between the organization and the service provider.

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