In The Make-or-buy Decision, Which Of The Following Is A Reason For Making An Item Quizlet?

Which of the following is a key factor in make-or-buy decisions?

The two most important factors to consider in a make-or-buy decision are cost and the availability of production capacity.

What is a make-or-buy analysis quizlet?

the act of deciding whether to produce an item internally or buy the item from an outside supplier. make.

What type of negotiation strategy requires the supplier?

The market-based price negotiation strategy requires that the supplier open its books to the purchaser.

What is the make-or-buy decision?

A make-or-buy decision is an act of choosing between manufacturing a product in-house or purchasing it from an external supplier.

What is make buy decision explain with examples?

A Make or Buy Decision is a decision made to either manufacture a product/ service in house or buy it from outside suppliers (outsourcing) based on cost-benefit analysis.

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Why make or buy decision is important?

Lower costs and higher capital investments One of the most notable advantages that a company enjoys when embracing a make-or-buy decision approach is that it can lower costs and increase capital investments, regardless of whether it decides to make materials in-house or subcontract from an external vendor.

Which of the following is a reason for outsourcing?

The biggest motivating reason for a company to outsource is to save money. There might be a problem with a supplier or a cost increase in materials and the company needs to reduce costs to stay competitive with its products. Another reason may be the need to downsize due to a merger or acquisition.

What is the goal of purchasing quizlet?

The primary goals of purchasing are: Ensure uninterrupted flows of raw materials at the lowest total cost, improve quality of the finished goods produced, and maximize customer satisfaction. Money firms spend on goods and services.

Which of the following is a major drawback of outsourcing?

it can make an organization become overly dependent on particular suppliers. A drawback of outsourcing is that: planning procurement management.

What are the three classic types of negotiation strategies?

Question: The three classic types of negotiation strategies are: vendor evaluation, vendor development, and vendor selectioncompetitive bidding, market-based price model, and cost-based price modelmany suppliers, few suppliers, and keiretsucost-based price model, market-based price model, and inventory-based.

What are the different negotiation strategies?

Some of the most common are distributive negotiation, integrative negotiation, team negotiation, and multiparty negotiation. In distributive negotiation, parties compete over the distribution of a fixed pool of value. Here, any gain by one party represents a loss to the other.

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What type of negotiating strategy requires the supplier to open its books to the purchases?

The market-based price negotiation strategy requires that the supplier open its books to the purchaser.

What are the five stages of the buyer decision process?

5 Stages of the Consumer Buying Decision Process

  • Need Recognition. The buying decision process begins when a consumer realizes they have a need.
  • Information Search.
  • Option Evaluation.
  • Purchase Decision.
  • Post-Purchase Evaluation.

When should a special order be accepted?

A special order generally should be accepted if: A) its revenue exceeds allocated fixed costs, regardless of the variable costs associated with the order.

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