Chapter 19, Problem 6AYK

Explanation of Solution

Advantages of outsourcing:

• Increased quality and efficiency:
  • The quality and efficiency of product could be improved through outsourcing.
  • Travel store could receive optimality in sales trends.
• Reduced operating expenses:
  • There is no resource and operating expenses while outsourcing a project.
  • The operating overhead for Travel store could be eliminated.
• Allow business to focus on core competencies:
  • The outsourcing of non-core processes would allow business to focus on core competencies.
  • Travel store can focus on core competencies while outsourcing inventory management.
• Risk exposure is reduced:
  • The risk of performing task and maintenance is been reduced.
  • The business could achieve quality results without having risk factor.
  • The risk features for Travel store will be reduced while eliminating inventory management trends.
• Access to outsourcing economies of scale as well as it provides expertise for the service provider...