A framework of make-or-buy planning for an assembler

Abstract

Finished product assemblers are sometimes subordinated technologically into several component manufacturers. For an assembler, one of the most important decision making steps is to do with the type of component it will make-or-buy. The objective of this study is to provide a framework of long-term perspectives for helping an assembler sustain its technological leadership. This study proposes three determinants of make-or-buy planning: attractiveness, competitiveness and technology policy of the company. The weights of the determinants are obtained by the analytic hierarchy process. The results show that the framework of the study could be a useful tool for business planning. Copyright © 2008 Inderscience Enterprises Ltd.