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speedy wheels is a motorized skateboard manufacturing company. what is a make-or-buy decision that the company will have to make?

User Bdoserror
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Final answer:

The make-or-buy decision for Speedy Wheels involves analyzing whether to produce a component in-house or outsource it by considering costs, core competencies, quality, and supply chain effectiveness. It is a cost-benefit analysis critical to the operational and competitive aspect of the manufacturing business.

Step-by-step explanation:

A make-or-buy decision that Speedy Wheels, a motorized skateboard manufacturing company, will have to make involves deciding whether to manufacture a component part in-house or to purchase it from an external supplier. This decision requires a careful cost-benefit analysis that compares the costs of in-house production, including labor, materials, and overhead, with the cost of purchasing the part externally. The decision will also consider factors such as quality control, lead times, production capacity, and the potential for intellectual property or proprietary technology concerns.

To make a well-informed decision, Speedy Wheels would typically analyze its core competencies—what it does best compared to competitors—and consider whether the part in question is critical to their competitive advantage. Additionally, the company will likely evaluate the reliability and performance of potential suppliers, as well as the flexibility that outsourcing may provide in responding to fluctuating demand.

In summary, a make-or-buy decision is a strategic choice that can significantly impact a company's operations and competitive standing within its industry. For Speedy Wheels, such a decision could impact the efficiency, cost-effectiveness, and quality of their motorized skateboards.

User Mithil Bhoras
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A make-or-buy decision that the company will have to make: Should the company outsource production to a low-cost vendor? Option 1

What would be a make or buy decision regarding a battery pack?

One of the critical make-or-buy decisions for Speedy Wheels is whether to manufacture the motorized skateboards in-house or outsource production to a low-cost vendor.

This decision involves weighing the potential cost savings from outsourcing against the potential loss of control over quality, production schedules, and intellectual property.

One advantage of outsourcing is that they would enjoy Reduced Labor Costs: Outsourcing to a low-cost vendor can significantly lower labor costs, especially if the vendor operates in a region with lower labor expenses.

Full question

Speedy Wheels is a motorized skateboard manufacturing company. What is a make-or-buy decision that the company will have to make?

  • Should the company outsource production to a low-cost vendor?
  • What are the products that the company should manufacture?
  • What should be the pricing strategy for the company's product?
  • Should the company increase its responsiveness toward the retailers?
User Haterind
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