Question

explain the relation between outsourcing decision and scheduling decision. if a subcontractor is available with unlimited capacity under what conditions would you recommend subcontracting?

Answer 1

Answer:

outsourcing decisions:

This chapter addresses how managers analyze costs to make short-term outsourcing decisions using incremental analysis. This type of decision is often called a 'make or buy' decision because it involves a decision of whether to continue 'making' (manufacturing) a product versus buying it from an outside company. From a business perspective, outsourcing enables a company to reduce costs or benefit from supplier efficiencies.

Scheduling decision:

Scheduling is considered as the time sequence of activities. Scheduling is a sub-phase of planning, in which, once an alternative program of action is identified, a course can be established and time sequenced.

The Scheduling Decisions mainly consists of the exercises of integrating time, resources and work elements in the most efficient manner to achieve the specified objective functions.

- An outsourcing decision is whether to buy a product or service from outside the company or produce it internally---an impact only on the cost. There is no implication of changing the selling price. and The Scheduling Decisions assist the Organizations to perform their functions with the minimum utilization of resources.

a subcontractor is available with unlimited capacity under what conditions would you recommend subcontracting?

conditions would you recommend subcontracting to the organization and have the benefits of the subcontracting is -

• Subs Can Help With Large Projects

• It Is Cost Efficient and Risk Adverse

• Subs Provide Expertise

• Subs Provide Expertise

• No Long Term Commitment

• Fewer Legal Obligations

it’s not unusual for companies to make use of subcontracting, which is defined as the contractual process by which a prime contractor entrusts a third party with all or part of a job to be performed under specified conditions, while the prime contractor keeps the responsibility for the finished product.

Subcontracting offers many quantitative advantages, including reducing costs, maintaining quality assurance, increasing productivity and preventing problems.

subcontracting is without a doubt the quality of the work, as long as you do business with the right resources, of course, since product or service quality is central to a company’s success. In principle, contractors are specialized in their area. Whether they are large companies or SMEs, their mission as contractors is to listen to your needs and to deliver a quality product that meets your criteria, expectations, budget, and deadline.

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