Make or Buy?

Abstract

There is always been a dilemma for the companies regards to either making the product in-house facility or buying the necessary products from the suppliers. In-house production, production costs, extra labor costs, monitoring costs, storage requirement costs, waste product disposal costs should be considered. However, when we look into products from the suppliers, product purchase price, sales tax charge, inventory holding costs, ordering costs should be considered as well. The decision is crucial for the companies regards to time and profit. Therefore, all the things should be analyzed step by step, then the decision can be given regarding to ease and profit. It can be divided into 4 stages such as planning, evaluation, analyzing, and selecting. [file:///C:/Users/Mehmet%20Kalkoseler/Downloads/I_Jakomin_A_Make-or-Buy_Decision_Process_for_Outso.pdf]

In this article, the main focus will be managing the steps regarding to make or buy decision.