the following should not be his major focus while working on this project? How to incorporate the latest technology in the product design. Whether he should buy some of the component from a supplier or make those components internally. How to save on the research and development cost. d) Whether he should use a modular design or integral design. 21. Which of the following is possible benefit of outsourcing in an industry? Capital investment is transferred to suppliers and downstream players along the supply chain Suppliers' high capital investment can be shared among customers. Aggregated multiple orders will increase total cost through economy of scale Demand uncertainty is increased among multiple customers 22. Which of the following is NOT the outsourcing risk? Outsourcing critical components to suppliers may open up opportunities for competitors Outsourcing implies that companies lose their ability to introduce new designs based on their own agenda rather than the supplier's agenda Outsourcing will reduce company's production cost. Outsourcing may prevent the development of new insights, innovation and solution. 23. According to Kraljic's supply matrix, a bottleneck item typically has High supply risk and high profit impact. High supply risk and low profit impact. Low supply risk and high profit impact. Low supply risk and low profit impact. 24. Inventory management, inventory policy must deal with uncertainties. Which of the following is a true statement about uncertainty? Managers must consider demand uncertainty and lead time uncertainty. Demand uncertainty is more difficult to predict. Lead time uncertainty usually is trivial in international transactions. It is relatively easier to predict demand uncertainty. Inventory policy addresses the basic questions of and to order: Where and how much Which supplier and how much How many suppliers and how much When to order and how much Reasons to carry inventory include: Buffer uncertainty Cover lead time demand Operational independence All of the above