Sophie, a fashion design student in the U.S., presented her designs at annual Magic Show where buyers and suppliers get together and share their new product lines. She received multiple orders from various retailers and she now needs to find a way to produce a large quantity of her design with a quick turnaround. However, she does not know how to manufacture actual garments, so she decided to source manufacturing from other experienced companies. This decision is made based on the ______ criterion.
a. Cost minimization
b. Capability acquisition
c. Risk reduction
d. Profit maximization
Question 2
A female designer decided to manufacture finished products within her company, instead of sourcing it outside of her company. Which of the following describes the opportunity cost she must consider before making this decision?
a. She could have had more time in developing new designs for other markets by not manufacturing within her company and sourcing manufacturing outside of her company.
b. She could have saved more money by not sourcing manufacturing outside of her company.
c. She gained more control and profits by manufacturing within her company.
d. She reduced service cost by not sourcing manufacturing outside of her company.
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