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OG Autoco Q

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AbeNeedsAnswers Master | Next Rank: 500 Posts Default Avatar
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OG Autoco Q

Post Wed Jul 19, 2017 10:24 pm
Previously, Autoco designed all of its cars itself and then contracted with specialized parts suppliers to build parts according to its specifications. Now it plans to include its suppliers in designing the parts they are to build. Since many parts suppliers have more designers with specialized experience than Autoco has, Autoco expects this shift to reduce the overall time and cost of the design of its next new car.

Which of the following, if true, most strongly supports Autoco’s expectation?

A) When suppliers provide their own designs, Autoco often needs to modify its overall design.
B) In order to provide designs for Autoco, several of the parts suppliers will have to add to their existing staffs of designers.
C) Parts and services provided by outside suppliers account for more than 50 percent of Autoco’s total costs.
D) When suppliers built parts according to specifications provided by Autoco, the suppliers competed to win contracts.
E) Most of the Autoco’s suppliers have on hand a wide range of previously prepared parts designs that can readily be modified for a new car.

E

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Post Thu Jul 20, 2017 6:44 am
AbeNeedsAnswers wrote:
Previously, Autoco designed all of its cars itself and then contracted with specialized parts suppliers to build parts according to its specifications. Now it plans to include its suppliers in designing the parts they are to build. Since many parts suppliers have more designers with specialized experience than Autoco has, Autoco expects this shift to reduce the overall time and cost of the design of its next new car.

Which of the following, if true, most strongly supports Autoco’s expectation?

A) When suppliers provide their own designs, Autoco often needs to modify its overall design.
B) In order to provide designs for Autoco, several of the parts suppliers will have to add to their existing staffs of designers.
C) Parts and services provided by outside suppliers account for more than 50 percent of Autoco’s total costs.
D) When suppliers built parts according to specifications provided by Autoco, the suppliers competed to win contracts.
E) Most of the Autoco’s suppliers have on hand a wide range of previously prepared parts designs that can readily be modified for a new car.

E
Conclusion: If suppliers are included in designing parts, Autoco will experience reduced cost and time.
Premise: Autoco used to design all its cars itself and then contract out the construction of the corresponding specialized parts.

So we want an answer choice that substantiates the notion that including suppliers in the design process will save time and money. This is what E gives us. Previously, the suppliers were building new parts according to the specifications provided by Autoco. If they work in concert, and, rather than building new parts, Autoco's suppliers can simply modify parts they have on hand, it will surely be cheaper and faster.

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