Differentiate between insourcing and outsourcing.  Discuss at least two circumstances favouring buying (outsourcing) and at least two circumstances favouring making (insourcing).  Based on your discussion of the circumstances favouring outsourcing and insourcing as well as the restrictions outlined by the Director, identify whether the cleaning detergents should be outsourced or insourced. Justify your answer by discussing at least two key points.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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Hi there can you please assist on the following question below

You have been recently appointed as a Purchasing Manager at Unilever. The director has mentioned that the organisation has recently been experiencing uncertainty in demand and there is currently no available capacity. As such, he is unsure whether he should make or buy the new range of cleaning detergents.

  • Differentiate between insourcing and outsourcing. 

  • Discuss at least two circumstances favouring buying (outsourcing) and at least two

    circumstances favouring making (insourcing). 

  • Based on your discussion of the circumstances favouring outsourcing and insourcing as well

    as the restrictions outlined by the Director, identify whether the cleaning detergents should be outsourced or insourced. Justify your answer by discussing at least two key points.

  • Identify any two potential drawbacks that Unilever could face given their choice of sourcing method. 

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