What was not a reason for Danaher to consider outsourcing the arch wire previously manufactured in-house?

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Prepare for the ASU SCM355 Supply Management Exam 1 with practice quizzes. Test your knowledge with flashcards and multiple choice questions, complete with detailed explanations. Master your exam!

The reasoning behind why the answer relates to Danaher's consideration of outsourcing the arch wire centers on business efficiency and strategic focus. In supply chain management, companies often evaluate whether to outsource certain components of their production, guiding decisions through several strategic lenses.

Outsourcing is typically pursued to enhance operations by focusing on core competencies. For Danaher, concentrating on areas where they have distinct strengths can lead to innovation, better resource allocation, and higher overall efficiency. Companies often look to relinquish operations that do not align closely with their principal activities or where they can achieve better results elsewhere.

Additionally, access to advanced technology is a crucial factor. Outsourcing can provide opportunities to leverage suppliers' capabilities, which might include superior technology, processes, and practices that a company may not have in-house. This can ultimately lead to improved product quality and efficiency, which would contradict the premise of high market prices driving the decision to outsource.

The option about expensive market prices for round wires may seem significant, but it does not align with the strategic motivations behind the decision to consider outsourcing. Rather, it's about leveraging quality improvements, focusing on core strengths, and gaining access to better technology that supports decision-making in favor of outsourcing. Thus, the choice regarding expensive market prices does not directly

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