Information Technology Project Management
9th Edition
ISBN: 9781337101356
Author: Kathy Schwalbe
Publisher: Cengage Learning
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Chapter 12, Problem 2DQ
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Make-or-Buy decision process and performing financial calculations in the Lease-or-Buy example:
- Make-or-Buy decision process is a strategic decision in the procurement function.
- In a Make-or-Buy decision process, the organization decides to carry out certain activities to deliver services or product, within the organization or hire a third party to do the same.
- It includes careful cost estimation for delivering a product and comparing them with the relevant cost after outsourcing this operation.
- Consider the example of Lease-or-Buy, if buying an equipment for a project of price $12,000, with a daily operational cost of $400, if incase we can even lease the same piece of equipment for $800 per d...
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