Why should an organization switch from making to buying?

Question 1Why should an organization switch from making to buying?

Make is typical less expensive,

make is faster implementation

buy is faster implementation and often has been tested

No answer text provided.

Question 2What is outsourcing?

keeping the function in house

going outside to have another firm support the process

is a core competence

No answer text provided.

Question 3Why would an organization outsource its logistics?

Better pricing

utilize expertise in the field,  

both A and B

No answer text provided.

Question 4How could a quality philosophy be applied to a supply department?

Question 5Why was Deming so insistent on single sourcing?

Question 6What does it mean if a supplier is ISO 9000 certified? ISO 14000 certified?  

Certified internationally

respect of potential vendors

no value to supplier

both A and B

Question 7Why is it expensive to carry inventories?

inventory is not wasteful

inventory does not take up physical space  

Inventory carries a cost of holding expense

Question 8 What is a Kanban and why is it used?  

A card to give direction to pull materials through the system

Inventory

a manufacturing plan

No answer text provided.

Question 9 What is JIT?

A sign or light to provide direction

An inventory method the relies on forecasting to lower inventory levels

a Quality management certification correct

No answer text provided.

Question 10Why is the make or buy decision considered strategic?

Strategic is short term,

make or buy has no impact on the bottom line

Make or buy can be long term and impact the companies bottom line in both the near term and longer term

No answer text provided.

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