In a Make or Buy Decision,the Reliability of a Potential

question 101

Multiple Choice

In a make or buy decision,the reliability of a potential supplier is

• A)an irrelevant decision factor.
• B)relevant information if it can be quantified.
• C)an opportunity cost of continued production.
• D)a qualitative decision factor.

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Definitions:

Demand Forecasts

Projections of a company’s sales for each time period in the planning horizon.

Process Cycle Time

The total time from the beginning to the end of a process, including processing time and any time the process is inactive or waiting.

Capacity Expansion

The process of increasing the production capabilities of a facility or system to meet expected demand increases.