At PlastiPharm, the extruded film, from which all the medical device bags are created, was purchased from one supplier for many years. The quality of the film was not consistent, with burnt areas or bubbles being the most common defects. Because of a patent, it was not possible to change suppliers. However, the patent recently expired, and PlastiPharm has contracted with a second supplier that has set up cameras to visually inspect the process and identify any defects prior to shipment. Which of the following statements best explains how PlastiPharm solved its variability problem with poor quality raw materials?

  • Building a relationship with the new supplier allowed the company to streamline its supplier agreement.
  • Contracting with a different supplier who can provide higher quality raw materials allowed PlastiPharm to maximize their costs.
  • Changing to a different supplier provided the company with leverage to force their current supplier to improve their performance.
  • Outsourcing to a different supplier that was willing to provide better quality raw materials allowed PlastiPharm to consistently make quality products.
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