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Some aspects of the decision to buy, not to produce parts and components

Plamena Milusheva ()
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Plamena Milusheva: University of Economics, Varna, Bulgaria

Economics and computer science, 2019, issue 2, 64-67

Abstract: The strategic decision taken by every manufacturing enterprise comprises the choice whether to produce or buy the materials incorporated in their product. The purpose of this paper is to find possible factors influencing the decision to buy, not to produce. A brief overview of the specialized literature is done. A questionnaire-based survey is conducted among a group of manufacturing companies in Bulgaria. Some conclusions are formulated based on the aggregated data of the survey. The importance of a group of factors in the decision making process whether to buy parts and components and not to produce them is proved. The obtained results refer to the analyzed group of manufacturing companies. The results of this study are useful for manufacturing companies who make the strategic choice on the make-or-buy decision.

Keywords: purchase; manufacturing enterprise; manufacture or buy; parts; components (search for similar items in EconPapers)
Date: 2019
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Handle: RePEc:kab:journl:y:2019:i:2:p:64-67