Article ID: | iaor20012715 |
Country: | United Kingdom |
Volume: | 20 |
Issue: | 11 |
Start Page Number: | 1313 |
End Page Number: | 1330 |
Publication Date: | Jan 2000 |
Journal: | International Journal of Operations & Production Management |
Authors: | Canez L.E., Platts K.W., Probert D.R. |
Keywords: | make-or-buy |
The make-or-buy question represents a fundamental dilemma faced by many companies. Companies have finite resources and cannot always afford to have all manufacturing technologies in-house. This has resulted in an increasing awareness of the importance of make-or-buy decisions. This paper reports on the development of a make-or-buy framework to address the make-or-buy decision for either a specific individual part or family of parts. Firstly, a literature review of the principal make-or-buy approaches is discussed. Secondly, the development of a make-or-buy framework is described and the framework is explained and illustrated using case studies. Thirdly, the operationalisation of the framework is outlined. The paper concludes with a discussion of its contribution to both the academic understanding of the subject, and the improvement of industrial practice.