Make-or-Buy Decision: Benefits of Manufacturing or Outsourcing

RUNNNING HEAD: MAKE-OR-BUY DECISIONS 1
UNIVERSITY NAME
STUDENT NAME
STUDENT ID
COURSE
DATE.

MAKE-OR-BUY DECISION 2
EXECUTIVE SUMMARY.
The purpose of this report is to analyze the benefits of either manufacturing or buying a part of a
company implement or product by taking into account the cost of either making or buying such
part or whole of that implement. This report therefore uses calculation to arrive at such decision
by drawing comparison between the cost of making or manufacturing it, the efficiency of such in
terms of man-hours needed, total units produced and time taken to produce such units.
This report also gives some reasons when a company decides to make or buy a particular item
considering the advantages such as improved quality, reduction in cost and and need for secrecy
disadvantages such as limited skills and knowledge..

MAKE-OR-BUY DECISION 3
Table of Contents
INTRODUCTION...........................................................................................................................4
DISCUSSIONS................................................................................................................................5
FACTORS THAT INFLUENCES A FIRM TO OUTSOURCE A PRODUCT OR PART...........5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7