When a firm makes a make decision when analyzing whether to make or buy they may still have to purchase some types of inputs from outside suppliers is True.
The quadrant method uses risk-value criteria to classify items into four categories of importance common items commodity items, distinctive items, and important items. Generics are low risk and low value. Goods are low risk and high value. Differentiators are high risk and low value. Critical assets carry high risk and high value.
Choosing the right supplier is more than scanning a set of price lists. Your choice depends on many factors such as value for money, quality, reliability, and service. How you weigh the importance of these different factors depends on your organization's priorities and strategy. A make-or-buy decision requires thorough analysis from all angles. Quantitative factors to consider include production facility availability production capacity and required resources.
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