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Describe Make or buy decisions – No limiting factors and give illustrations

Describe Make or buy decisions – No limiting factors and give illustrations

Answers

It involves a decision by an organization about whether it should make a product or carry out an activity with its own internal resources or whether to pay another organization to make the product or carry out an activity.


(b) Other factors (outsourcing)
(i)How reliable is the supplier who will supply the buy items.
(ii)The quality of inputs used by the supplier and hence the quality of the outsourced product.
(iii)Effect on employees - outsourcing will mean redundancies.
(iv)Consider the expected change in price given by the subcontractor – this will affect the decisions already made.
(v)Effect of outsourcing on suppliers e.g. if there is a prior commitment or economies of scale.

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Titany answered the question on October 12, 2021 at 05:47

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