1. From below, which one is NOT a factor that would make outsourcing more attractive than producing in-house?
increased total production capacity
disclosure of proprietary information to supplier
potential to lower fixed costs
supplier cost may be lower
supplier may have greater expertise to do the outsourced work
2. From below, which one is most likely to reduce effective capacity?
employees that are fully trained
greater variety in the product line
suppliers that provide more reliable delivery performance
reduced changeover times
improved production quality