What other types of data have to go into the decision


Problem

A. Why should a purchaser evaluate the cost of making an item instead of simply evaluating the purchase price? Is this true for all types of products? Why or why not?

B. Is global sourcing always the lowest-cost option on account of the low labour rates? What other types of data have to go into this decision?

C. What is the difference among a fixed cost, a semi-variable cost, and a variable cost?

D. What happens if a supplier cannot meet a purchaser's initial traget price? How is this issue resolved? Initial target price? How is this issue resolved?

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Supply Chain Management: What other types of data have to go into the decision
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