Question at position 16 All of the following are reasons for Buying or Outsourcing an item from a supplier, EXCEPT for which one?Due to the lack of expertise in your own company operationsBecause you want a adopt multi-sourcing strategyBecause the item is non-strategicBecause you want to use existing idle capacity in your own company operations

Question

BlackTom AI · Accepted Answer

Consider the question: which of the following is NOT a reason to buy or outsource from a supplier? We'll evaluate each option one by one to see if it aligns with typical outsourcing motivations.
Option 1: 'Due to the lack of expertise in your own company operations' — This is a classic reason to outsource. When you lack specialized knowledge or capabilities, outsourcing to a supplier with that expertise can improve quality, speed, and efficiency. So this option supports outsourcing rather than arguing against it.
Option 2: 'Because you want a adopt multi-sourcing strategy' — Implementing a multi-sourcing strategy is a deliberate approach to diversify risk, leverage competition, and ensure supply continuity. It is indeed a reason to contract with external suppliers, not a reason against outsourcing.
Option 3: 'Because the item is non-strategic' — Non-strategic or commodity items are commonly outsourced to reduce costs and focus internal resources on core activities. This aligns with outsourcing motives rather than opposing them.
Option 4: 'Because you want to use existing idle capacity in your own company operations' — Here, the motivation is to utilize idle capacity within the company, which typically points toward producing in-house rather than outsourcing. Using idle capacity is a driver for internal production or insourcing, not for purchasing from an external supplier. Therefore, this option does not fit the usual reasons to buy or outsource and is the EXCEPT.
In summary, the first three options describe legitimate outsourcing motivations, while the fourth describes an internal-use motivation that would lessen the need to outsource. The statement that does not represent a reason to buy or outsource is the final one.

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