It appears to deal with the coordination of tasks required to make products and to get them to the customers. This includes production, storage, and transportation activities. These activities have to be coordinated along the whole chain, possibly over the boundaries of multiple firms. The tradeoffs between making and buying are well known to most of the supply chain managers. In buy decision a manufacturer buy a necessary part from an outside source free up resources reduces capital demand, increase flexibility and improves returns on capital. A make approach concerned with developing and making that part internally enables the company to utilize maximum available capacity and protect intellectual property but it lead to unnecessary complexity and divert time from other activities. Factors
The whole make and buy analysis are made on basis of four major factors which are as follows:
1. Strategic values
2. …show more content…
It is evident that REEW takes into consideration the necessary steps to establishing an efficient and effective supply chain. The company carefully and strategically plans all its operations as well as the location of facility. The efficiency and success of the execution of the REEW supply chain heavily relies on the strategies implemented by the company and the ability of its suppliers and the company as a whole to link each strategy with the with an appropriate make and buy plan.
REEW will proved its ability to produce, assemble and distribute the final product with the ease and effective time management while providing the best customer service based on long term that many companies constantly have to work towards on a continuous