- 1 What are the qualitative factors in make-or-buy decision?
- 2 Which of the following factors are not qualitative factors in a make-or-buy decision?
- 3 Which of the following items should not be considered when evaluating a make-or-buy decision?
- 4 What factors are taken into consideration when someone has to take a decision regarding make a product in own factory or buy the product from the market show it with the help of a small numerical example where the concerned product is available in the market at Rs 100 per piece?
- 5 What are quantitative and qualitative factors in decision making?
- 6 What is make buy decision explain with examples?
- 7 What are quantifiable factors?
- 8 What qualitative issues might affect your final decision?
- 9 What qualitative factors should be considered in the outsourcing decision?
- 10 What are qualitative factors?
- 11 When should a special order be accepted?
- 12 What do you mean by make-or-buy decision?
- 13 Why make or buy decision is important?
- 14 What are the factors to be considered when buying goods and services?
- 15 Which cost help in taking make or buy decision?
What are the qualitative factors in 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.
Which of the following factors are 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.
Which of the following items should not be considered when evaluating a make-or-buy decision?
Net book value (NBV) of the production equipment used to make the item in question does not have to be considered when evaluating a make-or-buy decision. Net book value (NBV) of the production equipment used is a Sunk cost or past cost and irrelevant is make-or-buy decision.
What factors are taken into consideration when someone has to take a decision regarding make a product in own factory or buy the product from the market show it with the help of a small numerical example where the concerned product is available in the market at Rs 100 per piece?
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 quantitative and qualitative factors in decision making?
What are the qualitative and quantitative 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.
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.
What are quantifiable factors?
Quantitative factors refer to the financial numbers that reflect the health and profitability of a company, such as the company’s assets, liabilities, revenue, and price-to-earnings (P/E) ratio.
What qualitative issues might affect your final decision?
Qualitative factors take into account other issues that may influence outcome of a decision like SWOT analysis (Strength Weakness Opportunities Threats); Human Resource Management issues like motivation, morale, retention etc; PEST (Political Economic Social Technological); Publicity and public image; long term
What qualitative factors should be considered in the outsourcing decision?
Let’s take a look at some of the factors to consider for taking outsourcing decisions for your business.
- 1) Cost Savings.
- 2) Pricing.
- 3) The Resources and Technology.
- 4) The Ability To Meet Deadlines.
- 5) Minimal Supervision.
- 7) Trustworthiness.
- 9) The Service Level Agreement.
- 10) Communication.
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.
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.
What do you mean by 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. Make-or-buy decisions, like outsourcing decisions, speak to a comparison of the costs and advantages of producing in-house versus buying it elsewhere.
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.
What are the factors to be considered when buying goods and services?
The consumers consider various things like the characteristics of the product, price charged, availability of the product at the required location and much more. The personal factors include age, occupation, lifestyle, social and economic status and the gender of the consumer.
Which cost help in taking make or buy decision?
Make or buy decision is the production decision made by the company i.e whether to buy the product or to manufacture the product. The cost of buying and manufacturing are both taking into consideration while making the decision. Hence, the cost of production is considered for ‘make or buy’ decision.