The two most important factors to consider in a make-or-buy decision are
cost and the availability of production capacity
.
Which factors must be considered in make-or-buy decisions?
- Volume of Production: …
- Cost Analysis: …
- Utilization of Production Capacity: …
- Integration of Production System: …
- Availability of Manpower: …
- Secrecy or Protection of Patent Right: …
- Fixed Cost: …
- Availability of competent suppliers or vendors.
Which of the following qualitative factors should be considered in a make-or-buy decision?
Choosing between these two methods is called the make-or-buy decision, or the outsourcing decision. Factors that influence the make-or-buy decision include both quantitative factors such as cost and time and qualitative factors such as
the suppliers’ trustworthiness and the quality of their products
.
What are the two main factors that influence a make-or-buy decision?
A company’s decision on whether to make or buy is based on its core competence.
The production cost and quality problems
are the major triggers of a make-or-buy decision. Other factors are managerial decisions and a company’s long-term business strategy that dictate the current operations pattern.
Which of the following factors or not qualitative factors in a make-or-buy decision?
Question: Which of the following is not a qualitative factor to be considered in a make-or-buy decision?
Possible lost jobs from buying outside supplier’s ability to satisfy quality standards Direct materials and direct labor costs from making Outside supplier’s ability to meet production schedule
.
What is make buy decision explain with examples?
Examples of the qualitative factors in make-or-buy decision are:
control over quality of the component, reliability of suppliers, impact of the decision on suppliers and customers
, etc. … The quantitative factors are actually the incremental costs resulting from making or buying the component.
What factors do you need to consider when you buy things?
- 1) Does this item have a purpose? …
- 2) How long will this item last? …
- 3) How much will we really use this? …
- 4) Will this cause clutter and chaos later? …
- 5) Do I want this because a friend has it or is telling me to buy it? …
- 6) Do I HAVE to buy this today?
What are the qualitative factors in decision making?
- Morale. The impact on employee morale of adding a break room to the production area.
- Customers. …
- Investors. …
- Community. …
- Products.
What are quantitative and qualitative factors in decision making?
Quantitative decisions are
mostly based on statistical analysis of collected data
whereas qualitative decisions are based on many algorithms like type and quality of data, factors that influence collected data, risk assessments etc.
When should a special order be accepted?
The general rule is to accept a special order
if the benefits exceed costs
. Otherwise, turn down respectfully. If the business has excess capacity to fill the special order, it would accept if incremental sales revenue exceeds incremental variable costs.
Which factors affect the make buy or lease decision?
Those factors are the
monthly payments, the length of the lease, the down payment, and the mileage restrictions on the lease contract
.
What are the major functions that must be accomplished in the purchasing process?
- Discover potential suppliers.
- Evaluate potential suppliers.
- Select suppliers.
- Develop suppliers.
- Manager supplier relationships.
What are the factors affecting the plant location?
- Availability of Raw Materials: …
- Proximity to Markets: …
- Transport Facilities: …
- Availability of Power, Fuel or Gas: …
- Water Supply: …
- Disposal Facility for Waste Products: …
- Climatic and Atmospheric Conditions: …
- Availability of Labour:
Which is the first step in the management decision making process?
The first step in management’s decision-making process is, “
Determine and evaluate possible courses of action.”
Which of the following is an important qualitative factor to consider regarding a special order?
Which of the following describes an important qualitative factor to consider regarding a special order?
The effect of the sale of special-order units will have on the sale of regularly priced units
.
What non financial factors should be considered in make or buy decisions?
There are several non-cost related includes
the capacity, quality, supplier relations and things like process control and trade secrets
that companies can consider before making the decision either to make or buy [2].
