Question

Discuss uncertainty variability and how it relates to making or buying:

Answer 1

Uncertainty refers to the lack of specific knowledge as to what the truth is whether qualitative or quantitative and variability refers to individual differences in quantities associated with predicted risk.

Making or buying decisions in business based on prediction, expectations, past data analysis, market research, etc and in this making or buying decision in business uncertainty and variability playing a key role.

As in this 2020 every air conditioner company, fan manufacturing companies, cooler manufacturing companies, other several manufacturing and service providers planned well to beat the summer but COVID-19 pandemic destroyed all their dreams and pandemic shifted the business in the situations where business only expecting breaks even point in this year. Business making or buying processes never possible without analyzing uncertainty and variability but proper analysis and understanding can track them and control the damage due to uncertainty and variability.