In: Accounting
What are some non-quantitative factors that must be taken into account before we decide whether we should manufacture in-house or we should outsource it to a vendor /supplier. Explain with examples atleast 3 such factors or considerations that we must examine.
ANSWER
the following are the non quantitative factors:
The accompanying Qualitative (non – quantitative) variables ought to be considered in make versus purchase
The providers must be solid and reliable to gracefully the necessary segments on schedule and guarantee there is no business misfortune due to non accessibility of the segments to be provided for creation.
The providers' parts ought to be quality consistent and there ought to be no bad things to say because of value issues. Nature of part is of most extreme significance and assumes a significant job in getting the thing from the provider.
The effect on existing providers who are providing parts to make the item ought to be contemplated. Especially if there is volume responsibility given to existing providers the equivalent ought to be re-haggled so the connection with existing merchants won't become antagonistic