Unformatted text preview: processing can lead to losses. • Should additional business be accepted? Will it be profitable to accept more business, if it does not go over 100% of operating capacity? Qualitative factors are elements involved in decision-making that cannot be quantified or expressed in dollars and cents. If a qualitative factor is expressed in monetary terms, it will be with great difficulty and inaccurate. Qualitative factors can be items like: product reliability, effect on employee morale, relationships with suppliers, commitments to suppliers, and effect on customers. In a make or buy decision, qualitative factors to be considered can be: labor cost, storage, and time. This is a real-life example of what the company I work for had to consider when deciding on Ardell eye lash production....
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- Spring '10
- Decision Making, Incremental Analysis, qualitative factors, Ardell