15) An operations manager is performing a factor-rating analysis to help him choose an outsourcing provider. He is focusing on two factors: A and B, using a weight of 75% for factor A and 25% for factor B. He has scored five different potential providers on both factors, using a scale of 1-5, with 1 representing the BEST score. Based on the scores provided in the table below, which provider should be chosen?
Provider
Factor A
Factor B
Alpha
1
5
Beta
3
3
Gamma
4
1
Phi
2
1
Omega
3
5
A) Alpha
B) Beta
C) Gamma
D) Phi
E) Omega
16) ________ is the practice of transferring a firm’s activities that have traditionally been internal to external suppliers.
17) Outsourcing manufacturing is also known as ________.
18) Outsourcing is an extension of the long-standing practice of ________ production activities.
19) The theory of ________ implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.
20) Identify three factors fueling the continuing growth of outsourcing.
21) Identify five main advantages of outsourcing.