Make or buy strategy decision making in supply quality chain

Abstract: Minimizing the total cost is absolutely the goal of each supply chain, which is most of the time pursued. In this regards, quality related costs that have significant roles are sometimes neglected. Selecting suppliers, which supply relatively high quality raw materials in a lower cost is considered as a strategic decision. Make or Buy decision can be also noticed in supplier selection process. In this paper, the supply strategy: Make or Buy decision (SS: MOB) is studied in order to find which strategy (Make or Buy) should be chosen to minimize the total costs of supply chain. Therefore, two separate models are generated for each strategy and several examples are solved for the respective models. Computational experiments show the efficiency of the proposed models for making decision about selecting the best strategy.

How to cite this paper

 Seyedhosseini, S., Mohammadipour, F & Ashtiani, M. (2012). Make or buy strategy decision making in supply quality chain.International Journal of Industrial Engineering Computations , 3(3), 413-422.

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