outsourcing and idle facilities.pptVIP

Outsourcing and Idle Facilities Outsourcing is purchasing goods and services from outside vendors. Insourcing is producing goods or providing services within the organization. Decisions about whether a producer of goods or services will insource or outsource are also called make-or-buy decisions .Sometimes qualitative factors dominate management’s make-or-buy decision. Example 2: The Soho Company, mentioned earlier, manufactures a three-in-one stereo consisting of a CD player, a cassette deck, and a digital radio. Columns 1 and 2 of the following table show the current costs for manufacturi