A company currently produces a major component and is considering purchasing the component from a foreign supplier. Assuming they were to purchase from the foreign supplier, which of the following would most likely impact the domestic manufacturing operations?
When a company shifts from producing a component in-house to purchasing it from a foreign supplier, the aspect that would most likely impact domestic manufacturing operations is the supplier lead time fluctuations. Lead time fluctuations can disrupt production schedules, lead to downtime, and cause delays in the entire manufacturing process. As manufacturing operations rely heavily on the timely availability of components, fluctuations in lead times can have a significant impact on workflow and efficiency.
manufacturing ops would be more affected by lead time fluctuations than the cost of transportation. the key here is "manufacturing operations"
Why cannot be D?