Hanes, a sock and underwear brand in the U.S., decided to close their manufacturing facilities in North Carolina and moved their production facilities to El Salvador in late 2000s. The Salvadorian factories are owned by Hanes and Hanes now make the majority of their products from these Salvadorian facilities. This describes a _________ option.
a. Global sourcing
b. Direct sourcing
c. Full package sourcing
d. CMT sourcing
Question 2
Which of the following is NOT an advantage of direct sourcing?
a. It allows the sourcer to directly control production plans, delivery schedules, and quality assurance plans.
b. It allows the sourcer to maintain core competency of manufacturing knowledge and know-how.
c. It allows the sourcer to lower the overall production costs.
d. It allows the sourcer to make flexible delivery schedules with low investment costs.
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