Are a qualitative factor of a make-or-buy decision?
Examples of qualitative factors include the reputation and reliability of the suppliers, the long-term outlook regarding production or purchasing the product, and the possibility of changing or altering the decision in the future and the likelihood of changing or reversing the decision at a future date.
What are the factors to be considered in the make-or-buy decisions?
Factors Influencing Make or Buy Decision:
- 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.
What are the two main factors that influence a make-or-buy decision?
Two primary factors which have a decisive influence on the choice of make or buy are the cost and availability of production capacity. Facilities are made available and other things being equal cost consideration assumes primacy.
What would be the qualitative factors to be considered by the management in a make versus buy decision?
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 are the qualitative factors in decision making?
Qualitative factors are decision outcomes that cannot be measured….Examples of qualitative factors are:
- Morale. The impact on employee morale of adding a break room to the production area.
- Customers.
- Investors.
- Community.
- Products.
Which of the following factors are not qualitative factor in 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 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.
Which of the following factors are not qualitative factors in a make-or-buy decision?
What qualitative factors should be considered by management in deciding whether or not to turn over the production of a part to an outside supplier?
Consider qualitative factors that can influence the decision to purchase the products from outside suppliers. Examples of such factors include the suppliers’ trustworthiness, the quality of its management, and the quality of its products.
Which of the following factors are not qualitative factors in make-or-buy decision?
What are qualitative factors?
Qualitative factors are decision outcomes that cannot be measured. Examples of qualitative factors are: Morale. The impact on employee morale of adding a break room to the production area.
What are examples of qualitative factors?
Examples of qualitative factors include customer satisfaction with a company’s products, pending litigation that harms a company’s reputation, a change in a company’s management, the relationship the company has with key vendors, or ownership of a new technology that gives the company a competitive advantage.
What are the qualitative factors to be considered in a decision?
When a company is making a make or buy decision, the qualitative factors it must consider include the lives of the employees who would be let go if the product was outsourced, the time constraints involved in getting outsourced products delivered and whether or not an outsourced product would be up to the company’s standards.
What are some factors that influence a buying decision?
The following are some of the factors that influence making or Buying Decision. Sometimes taking the decision to make a part of the product in house that purchasing from outside can reduce the cost.
What are the quantitative aspects of a product?
Quantitative aspects are essentially the incremental costs stemming from making or purchasing the component. Factors of this type to look at may incorporate things such as availability of manufacturing facilities, needed resources and manufacturing capacity.
What are the advantages of making a decision?
Some of the advantages of making or buy decisions are as follows: The finding helps choose the most efficient option to go about in-house production of outsourcing. The decision helps in the strategic maneuver of the business. The decision helps save the cost for many businesses.