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Supply Chain Management: Text and Cases, 2nd Edition by Janat Shah

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3

Outsourcing: Make Versus Buy

Learning Objectives

After reading this chapter, you will be able to answer the following questions:

  • How do firms take make-versus-buy decisions?
  • What is the underlying theoretical logic for make versus buy decisions?
  • What are the costs and benefits of outsourcing?
  • What should be the nature of the relationship with vendor firms?
  • How can a firm design its sourcing strategy based on a purchase portfolio matrix?
  • How has the Internet affected the sourcing decisions of firms?

A boisterous group of young adults walks into a Nike outlet. The life-sized poster of a prominent cricketer has drawn these people to the store. Ecstatic over India’s win in the recently concluded Twenty20 World Cup, they admire the poster ...

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