A Make‐or‐Buy Decision Analysis Involving Imprecise Data
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 1 February 1994
Abstract
The make‐or‐buy decision has been performed on the assumption that cost data are deterministic and accurate. The data available to decision makers are often highly imprecise because of estimation inaccuracy and/or errors in measurement. The bounded interval estimate is a common allowance scheme to compensate for the inherent estimating error. Applies the propagation of errors technique to evaluate make‐or‐buy alternatives with estimate errors. The numerical examples show how the proposed error analysis generates more discerning power when assessing competing alternatives.
Keywords
Citation
Paul Yoon, K. and Naadimuthu, G. (1994), "A Make‐or‐Buy Decision Analysis Involving Imprecise Data", International Journal of Operations & Production Management, Vol. 14 No. 2, pp. 62-69. https://doi.org/10.1108/01443579410053239
Publisher
:MCB UP Ltd
Copyright © 1994, MCB UP Limited