1. Textbook: Purchasing and Supply Management by Johnson/Flynn
Outsourcing:
a) occurs primarily in large manufacturing firms in the private sector, but is rarely practiced in public purchasing.
b) decisions are based on financial factors that most organizations can easily access through their accounting system.
c) usually results in increased hiring to attain expertise that the organization does not already possess.
d) may reduce or control operating costs, improve focus on core competencies, and gain access to world-class capabilities
e) is a low risk venture because the firm can always revert back to performing the function in-house at low cost
2. Purchasing and Supply Management - 15th Edition
Purchasing by specification typically occurs when:
a) a high degree of supplier expertise is required and difficult to define.
b) the internal user’s preferences are impossible to overcome.
c) the buyer wants the supplier to decide how to make the most suitable product.
d) a supplier holds a needed patent
e) there are multiple sources for an identical requirement