Final answer:
The nonfinancial concerns pertaining to make or buy decisions include the impact on production scheduling and flexibility, as well as product quality.
Step-by-step explanation:
The correct answer is option 2 and option 4.
Nonfinancial concerns pertaining to make or buy decisions include:
- Will the decision to use an external vendor impact production scheduling and flexibility? When choosing to make or buy a product, the decision to use an external vendor can impact the production schedule and flexibility.
- If an external vendor is selected, the firm may have to adjust its production schedule to align with the vendor's availability. Additionally, the firm may have less flexibility in modifying the product design or making changes in production processes.
- Will the decision to use an external vendor impact product quality? Using an external vendor can impact product quality as the firm may have less control over the manufacturing process. The vendor may not have the same quality standards or processes in place as the firm, leading to potential variations in product quality.
The correct answer is option: "Will the decision to use an external vendor impact production scheduling and flexibility?", "Will the decision to use an external vendor impact long term product availability?", and "Will the decision to use an external vendor impact product quality?".
These options represent nonfinancial concerns that a company might consider when facing a make or buy decision. Such decisions often involve weighing both financial and nonfinancial factors.
Nonfinancial concerns can significantly impact a company's operations and strategic positioning. For example, relying on an external vendor may affect the firm's production scheduling and flexibility, potentially leading to longer lead times and less control over the production process.
Additionally, there may be concerns about consistent long-term product availability if the external vendor faces supply chain issues. Lastly, using an external vendor could also affect the quality of the final product, which is a critical nonfinancial factor that could impact customer satisfaction and the company's reputation.