Correct Response: C. Outsourcing involves sending some or all production to specialized vendors and may reduce the cost of production and overhead. If a company's production facilities are at capacity and product demand continues to rise, outsourcing some production is likely to be a good business strategy for meeting demand. Adopting a new manufacturing process that is more efficient (A) would meet demand and would not require outsourcing. Increasing production lines while demand decreases
(B) would result in overproduction and not require outsourcing. Outsourcing the production of a new product before quality control issues have been resolved (D) would likely result in a less-than desirable product.