Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products. Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal. This collaborative arrangement is most likely to be classified as _____.

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06-05-2022
Business

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Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufacturing capacity and would hinder its ability to continue producing its other products. Alumplus Aluminum hires LM Group of Manufacturers to manufacture the new type of metal. This collaborative arrangement is most likely to be classified as _____.

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Anthougoidn Anthougoidn · Answer 1 · 2022-05-12T06:00:27-04:00

This collaborative arrangement between Alumplus Aluminum Company and LM Group of Manufacturers is most likely to be classified as Outsourcing.

What is outsourcing?

Outsourcing involves the hire agreement between two entities in which the outsourcing entity allows the vendor to supply goods and services that it formerly produces in-house.

The main advantages of outsourcing are:

Lowered costs
Improve efficiencies
Allows an entity to gain speed.

Thus, this collaborative arrangement between Alumplus Aluminum Company and LM Group of Manufacturers is most likely to be classified as Outsourcing.

Learn more about outsourcing at https://brainly.com/question/12101789 and https://brainly.com/question/4456416

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What is outsourcing?

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