Chapter 12, Problem 12RQ

Explanation of Solution

Make-versus-buy decision:

• The decision regarding whether to obtain the necessary software from internal or external sources, simply because it costs too much and takes too long to build a quality information system.
• It is the act of deciding between manufacturing a product in-house or buying it from an external supplier.
• Quantitative analysis, such as associated cost of production and whether the business can produce at the desired levels.

Justification:

• The analysis team assesses the software marketplace to determine whether existing packages can meet the organization’s needs using a tool called request for proposal (RPF)
• RFP is a formal document that outlines an organization’s software or hardware needs and requests vendors to develop a detailed proposal of how they would meet those needs and at what cost.
• The RFP outlines the desired system and its requirements and It identifies the pieces of data that the software vendor must include in the proposal...