Question

1. In a service triad:

Multiple Choice

• the service supplier and customers are the coproducer of the service, excluding the buyer from the service encounter.

• the buyer is dependent on the supplier for the satisfactory fulfillment of customers’ service demands.

• the buyer is dependent on the supplier for customer service innovation and organizational learning.

• the service supplier and customers are the coproducer of the service, excluding the buyer from the service encounter and the buyer is dependent on the supplier for the satisfactory fulfillment of customers’ service demands.

• the service supplier and customers are the coproducer of the service, excluding the buyer from the service encounter, the buyer is dependent on the supplier for the satisfactory fulfillment of customers’ service demands and the buyer is dependent on the supplier for customer service innovation and organizational learning.

2. Insourcing should be considered when:

Multiple Choice

• assurance of supply is a problem.

• the supplier has developed a unique process to produce the product or service.

• there is an opportunity to reduce costs significantly.

• assurance of supply is a problem and there is an opportunity to reduce costs significantly.

• assurance of supply is a problem, the supplier has developed a unique process to produce the product or service and there is an opportunity to reduce costs significantly.

3. Outsourcing of services is:

Multiple Choice

• unrealistic because of the difficulty in measuring service providers’ performance.

• realistic because of the ease in measuring service providers’ performance.

• increasing because it is easy to define service requirements and measure quality.

• decreasing because buyers are dissatisfied with most third party service providers.

• realistic if service requirements and quality expectations can be clearly defined.

4. Outsourcing of services is:

Multiple Choice

• decreasing in volume, but increasing in scope.

• decreasing in volume and scope.

• increasing in volume and scope.

• increasing in volume, but decreasing in scope.

• about the same in volume and scope over the last decade.

5. Outsourcing:

Multiple Choice

• occurs primarily in large manufacturing firms in the private sector, but is rarely practiced in public purchasing.

• may reduce operating costs, improve focus on core competencies, and gain access to world-class capabilities.

• decisions are based on cost-benefit analysis.

• usually results in increased hiring to attain expertise that the organization does not already possess.

• is a low risk initiative because the firm can always revert back to performing the function in-house.

Answer 1

**As per the Chegg guidelines, experts are allowed to answer only the first question** Please do not downvote, as we are only following the policies.

1) The buyer is dependent on the supplier for the satisfactory fulfillment of customers’ service demands.

The service triad has three parties which are a service organization, contact personnel, and the customers. To control the customers, organizations always aim to fulfill the needs and requirements of the customers. So, generally, the buyer or the customers need to depend upon the supplier or vendor to make themselves satisfied.

2) Assurance of supply is a problem and there is an opportunity to reduce costs significantly.

A company should think of insourcing when there is a chance to reduce the cost of operations as it would help the company to adjust its budget. Besides, when there would not be any assurance from the third party regarding the supply of goods in a safe way then it is better to insource the supply chain process.

Hope this helps :)