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make or buy desions within dyson
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- 2253
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- Mon Dec 03 2007
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... Make-or-Buy? An important question to many organisations, but what is make-or-buy? "Make-or-buy is a business decision that compares the costs and benefits of manufacturing a product or product component against purchasing it. If the purchase price is higher than what it would cost the manufacturer to make it, or if the manufacturer has excess capacity that could be used for that product, or the manufacturer's suppliers are unreliable, then the manufacturer may choose to make the product. This assumes the manufacturer has the skills and equipment necessary, access to raw materials, and the ability to meet its own product standards" (www.answers.com). For this assignment I'll be analysing whether or not a chosen company (Dyson ltd) should outsource or internally manufacture one of its operations. In addition to that I'll be looking at what complications such decision might have, as well as analysing how the purchasing team can make the best possible decision














