Question

Identify the limitation(s) of Contract Manufacturing.

• A. There is no way hiring company can force the manufacturer not to enter into a contract with a competitor.
• B. The hiring company is also likely to lose intellectual property rights to the design idea.
• C. The hiring company may end up not having the products when needed.
• D. All of the above

Answer 1

The correct option is D All of the above

Limitations of Contract Manufacturing : The local firms producing under such kind of agreement are not free to sell the contracted output to anywhere and anybody else.Local manufacturers has no control over manufacturing process because the goods are produced as the per the guidelines given under the contract.