Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 6.9, Problem 27P
Summary Introduction

Interpretation:Discuss the reasons behind outsourcing even by large companies with their own establishments.

Concept Introduction: Make or buy/outsource are strategic decisions to be taken by the companies whether manufacturing and/or logistics. The decision may be for a product or service. The decision is based on many factors which are unique to every company and every situation. A few important ones are cost of investment including space, availability of technology, infrastructure required, availability of reliable suppliers etc.

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