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THE MAKE-OR-BUY DECISIONS IN ITALCEMENTI PACKING SOLUTIONS: A quantitative approach in the global purchasing strategy context
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.).
2012 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesis
Abstract [en]

Many multinational corporations find themselves frequently in the dichotomous question of whether to make or buy a given component; but when those companies are operating with a global purchasing strategy, oriented to high levels of centralization and dealing simultaneously with the implications of purchasing and producing the same item, the approach to take the decision becomes difficult to find, even with the current literature and practitioners knowledge

This master thesis addresses in a comprehensive proposal the way to undertake this kind of make-or-buy decisions. Through the literature review done, regarding global purchasing strategy, purchasing models, supplier selection methods and make-or-buy frameworks; it was found a convenient model to merge those concepts with the empirical experiences of a single case study in the Italcementi Group, one of the largest Cement producers in the world.

The model proposed considers both strategic and economic elements and is designed as an iterative algorithm that evaluates several alternatives in order to arrive to the best make-or-buy approach. The methodologies selected and combined to solve the problem are mostly quantitative, but keeping the importance of qualitative elements within the analysis. The outcome of the thesis is a contribution to academicians and practitioners aiming to turn the existing knowledge about make-or-buy decisions into practical solutions for business management.

Place, publisher, year, edition, pages
2012. , 125 p.
Examensarbete INDEK, 2012:127
Keyword [en]
Make or buy decisions, concurrent sourcing, global purchasing strategy, supplier selection process, procurement model
National Category
Engineering and Technology Engineering and Technology
URN: urn:nbn:se:kth:diva-102835OAI: diva2:556939
Available from: 2012-09-27 Created: 2012-09-26 Last updated: 2012-09-27Bibliographically approved

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