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Purchasing items from an outside source instead of making them internally is called what?
ARouting of the required materials
BScheduling of the required materials
CInventory control of the materials
DOutsourcing of the required items
Answer & Solution
Correct answer: D. Outsourcing of the required items
1. Outsourcing is the purchase of items from an outside source rather than making them internally.
2. A motorcycle maker that buys its tires and brake systems from other manufacturers is outsourcing those components.
3. The supplier makes them to the buyer's own specifications, so the buyer still controls the design.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Make or Buy?_
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