1- In what ways do you, the purchasing professional help in making great outsourcing decisions?

• a. Knowledge of material costs and production processes allows you to estimate the true cost of in-house production.
• b. Category expertise and knowledge of the market allows you to identify and assess prospective supplier capabilities.
• c. Knowledge of the P&L implications helps you to gather vital information.
• d. All of the above
• e. Only A & B

2- What is the downside to subcontracting?

• a. The loss of some control over the production process.
• b. The hassle of getting the business up and running.
• c. The high levels of technological support that is needed.
• d. All of the above
• e. Only A & C

3-What astonishing announcement did Adidas make in June of 2016?

• a. They were going out of business
• b. They were entering the computer business
• c. They reshored shoe manufacturing to Germany
• d. They reshored shoe manufacturing to China
• e. Their cost of goods sold decreased 30%

4-What are the three statistics that might provide insight into the quality of an offshoring location.

• a. Leading Exporters, FDI Destinations, & AT Kearneys global Offshoring Location Index
• b. FDI Destinations, CIA World Factbook, OECD Data
• c. AT Kearneys global Offshoring Location Index, Leading Exporters, & CIA World Factbook
• d. OECD Data, Leading Exporters, & CIA World Factbook
• e. None of the above

5-When considering implementation in Stage 4 of the of the outsourcing/offshoring process, what issues should you consider?

• a. How to communicate expectations and monitor performance?
• b. What level of intensity should the relationship be?
• c. How will continuous improvement be driven?
• d. Who will be on the team?
• e. All of the above
• f. Only A, B, & C