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1. Provide five examples of how the supply chain is providing a critical role in the fight over COVID-19 in the US.

2. In your opinion, how did LeapFrog and Capable Toys demonstrate agility in responding to the new market demands?

3. Which process steps should be more standardized? Which process step’s should be more artistic? Explain.

4. Should Pagoda.com outsource its online help desk? Why or why not?  Be sure to consider Table 7.7 and 7.8 when framing your answer.

5. What is the relationship between design for manufacturing (DFM) and design for supply chain (DFSC)?

The Strategic Sourcing Process (5 of 17)

Table 7.7 Advantages and Disadvantages of Insourcing and Outsourcing

Insourcing Blank
Advantages Disadvantages
High degree of control Reduced strategic flexibility
Ability to oversee the entire process Required high investment
Economies of scale and/or scope Potential suppliers may offer superior products and services
Outsourcing Blank
Advantages Disadvantages
High strategic flexibility Possibility of choosing a bad supplier
Low investment risk Loss of control over the process and core technologies
Improved cash flow Communication/coordination challenges
Access to state-of-the-art products and services Increased risk of supply chain disruption, corporate social responsibility (CSR) risks

Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved.



The Strategic Sourcing Process (6 of 17)

Table 7.8 Factors that Affect the Decision to Insource or Outsource

Blank Favors Insourcing Favors Outsourcing
Environmental uncertainty Low High
Competition in the supplier market Low High
Ability to monitor supplier’s performance Low High
Relationship of product/service to buying firm’s core competencies High Low

Copyright © 2019, 2016, 2014 Pearson Education, Inc. All Rights Reserved.