Warehousing Alternatives. The Make or Buy Decision
The make-or-buy decision was first used by management to determine whether a certain component should be manufactured inhouse or purchased from an outside vendor. The fact that a similar decision can be made in selecting warehouses is sometimes overlooked. Most users of warehouse services also are able to use their own people to get the job done. To this extent, the decision whether to hire a warehouse operator or run the warehouse yourself is the same classical “make-or-buy” problem.
KeywordsReal Estate Operating Profit Distribution Manager Practical Handbook Capital Turnover
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