Chap005 - Chapter 05 - Make or Buy, Insourcing, and...

Info iconThis preview shows pages 1–4. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 05 - Make or Buy, Insourcing, and Outsourcing C HAPTER 5 Make or Buy, Insourcing and Outsourcing Topics Covered Make or Buy Reasons for Make instead of Buy Reasons for Buying Outside The Gray Zone in Make or Buy Subcontracting Insourcing and Outsourcing· Insourcing Outsourcing Outsourcing Supply and Logistics Supply’s Role in Insourcing and Outsourcing Conclusion Questions for Review and Discussion·· References·· Cases Rodot Automotive Alicia Wong 5-1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 5 - Make or Buy, Insourcing, and Outsourcing QUIZ RESPONSES D 1. One of the most fundamental and critical decisions in any organization is, should we: a. have a single source or multiple sources for a specific purchase? b. order small quantities to avoid carrying costs or large quantities to get volume discounts? c. switch suppliers because of a slight price discount from a potential supplier? d. make or buy the needed good or service? e. enter into a long- or short-term agreement with a supplier? B 2. When a team has decided that a task or function currently performed by company employees is not a core competency, the team will probably recommend: a. insourcing. b. outsourcing. c. continuing to make. d. continuing to buy. e. near-sourcing. . E 3. Deciding what represents a core competency in an organization is: a. a decision best left to the organization’s Board of Directors. b. a decision best left to the Chief Executive Officer. c. always the same for companies in the same industry. d. a fairly easy decision once organizational goals and objectives are known. e. often a fairly complex decision and a function of many factors.
Background image of page 2
Chapter 5 - Make or Buy, Insourcing, and Outsourcing B 4. Outsourcing of services is: a. unrealistic because of the difficulty in measuring and evaluating the performance of service providers. b. realistic if the internal users and the buyer can carefully define service requirements and quality expectations. c. declining in popularity because of buyers’ dissatisfaction with most third party service providers. d. realistic because of the ease in measuring and evaluating performance of service providers. e. realistic because it is relatively easy to define service requirements and measure the quality of a service provider. D 5. Currently, managements tend toward: a. making rather than buying. b. buying parts and assembling them onsite. c. insourcing entire operations. d. outsourcing entire operations. e. making anything that is low risk. A 6. Outsourcing: a. is often chosen as a way for the organization to reduce or control operating costs, improve company focus, and gain access to world-class capabilities. b. is a low risk venture because the firm can always revert back to performing the function in-house at low cost. c.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 4
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/28/2011 for the course P 320 taught by Professor Lee during the Spring '11 term at Columbus State University.

Page1 / 18

Chap005 - Chapter 05 - Make or Buy, Insourcing, and...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online