Business A-Level
outsourcing
What outsourcing means in Business A-Level, as defined for AQA.
Definitions of outsourcing
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Reference: AQA
Contracting an external firm for an activity previously done in-house, which can convert a fixed cost into a variable cost based on a per-unit charge.
A way of matching supply to demand, buying flexibility at a price.
Topics that use outsourcing
- Making operational decisions to improve performance: managing inventory and supply chains (AQA A-Level)
Related terms
- capacity utilisation
- Core vs non-core activities
- effectiveness versus efficiency
- ethical sourcing
- holding cost versus stockout cost
- producing to order
- re-order level and quantity
- single and multiple sourcing
Using outsourcing in the exam
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