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Journal cover: International Journal of Operations & Production Management

International Journal of Operations & Production Management

ISSN: 0144-3577

Online from: 1980

Subject Area: Operations and Logistics Management

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Developing a framework for make-or-buy decisions

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Title:Developing a framework for make-or-buy decisions
Author(s):L.E. Cánez, (Cambridge University, Cambridge UK), K.W. Platts, (Cambridge University, Cambridge UK), D.R. Probert, (Cambridge University, Cambridge UK)
Citation:L.E. Cánez, K.W. Platts, D.R. Probert, (2000) "Developing a framework for make-or-buy decisions", International Journal of Operations & Production Management, Vol. 20 Iss: 11, pp.1313 - 1330
Keywords:Decision making, Make v. buy, Outsourcing, Sourcing
Article type:Research paper
DOI:10.1108/01443570010348271 (Permanent URL)
Publisher:MCB UP Ltd
Abstract: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.

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