The kind of decision-making system that needs to be dealt with in this case is much likely concerned in choosing the best supplier from the four others who have already been closely assessed by the administration at an earlier time. Because of the number of choices and the level of concentration that needs to be considered in this phase of decision-making for the company, the process of coming up with the final decision would certainly require more time and effort of analysis. Unlike other systems of approach in sourcing, this case may appear to be quite difficult to handle since the choices range from both insource and outsource suppliers.
In other business cases, the choices are rather much easier to decide upon since they either involve insource suppliers or outsource suppliers. Having to decide on this matter would be much easier to control since the choices are more closely related compared to that of the case handled by PSC. 4. How important is the issue of supplier capacity in this case? How did your group evaluate supplier capacity? What level of attention or importance should supplier capacity receive during the sourcing decision?
Why? The record or reputation that the organization has already established in its name as part of the industry is quite a huge matter of consideration for many purchasers to understand. As the said purchasing company assesses the possible candidates for the supplies of the product to b outsourced, knowing the capabilities and capacities of the major organizations on the top choice is an important element that could influence the results of the decision-making process that the organization is undergoing.
It is indeed of high importance that this aspect of the company competence of the different organizations chosen is measured well by the decision-makers of the said matter. 5.Supplier selection decisions, such as the one presented in this case, usually require many weeks or months of analysis and discussion before reaching the final agreement with a supplier(s).
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