Buy It Is Recommended That a Firm Case Study

Open, View, and/or
Download this Document

Total Length: 469 words ( 2 double-spaced pages)

Total Sources: 3

Page 1 of 2

Buy

It is recommended that a firm outsource items unless 1) item is critical to the success of the product, including customer perception of important product attributes, 2) item requires specialized design and manufacturing skills or equipment and capable suppliers are limited, or 3) the item fits well within the firm's core competencies (Management, 2006). Things that need to be considered in the decision are costs, direct control over production and quality, competencies of the supplier, assurance of continual supply, expertise, limited production facilities or insufficient equipment, and procurement and inventory considerations. Additional considerations that need to be considered are the impact of quality or delivery and the irreversibility of the decision (Dominick).

Stuck Writing Your "Buy It Is Recommended That a Firm" Case Study?

View All Our Example Buy It Is Recommended That a Firm Case Study

Have A Custom Example Essay Written



The request for cost reduction brings cost savings as the key performance driver (Industrial Make or Buy Decisions). But because Krause's mission stresses quality workmanship, competitive pricing, and timely performance, this also needs to be part of the consideration of whether to buy or make the pipelines. The most important consideration is the pipes have to be absolute leak proof, which means the highest quality of product.

The labor is $32.60 per hour, so divided by 60 minutes would be .54 per minute. The 60-inch wide steel would produce no waste to cut them into 10-inch wide pieces. With this consideration the in-house costs would look like this:

In House Production

Labor (8x.54)x6.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Buy It Is Recommended That A Firm" (2012, August 02) Retrieved May 22, 2025, from
https://www.aceyourpaper.com/essays/buy-recommended-firm-81441

Latest MLA Format (8th edition)

Copy Reference
"Buy It Is Recommended That A Firm" 02 August 2012. Web.22 May. 2025. <
https://www.aceyourpaper.com/essays/buy-recommended-firm-81441>

Latest Chicago Format (16th edition)

Copy Reference
"Buy It Is Recommended That A Firm", 02 August 2012, Accessed.22 May. 2025,
https://www.aceyourpaper.com/essays/buy-recommended-firm-81441
   

Open, View, and/or
Download this Document
order custom essay example