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THE MAKE-OR-BUY DECISIONS IN ITALCEMENTI PACKING SOLUTIONS : A quantitative approach in the global purchasing strategy context

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.

Identiferoai:union.ndltd.org:UPSALLA1/oai:DiVA.org:kth-102835
Date January 2012
CreatorsFernandez Martinez, Pablo Enrique
PublisherKTH, Industriell ekonomi och organisation (Inst.)
Source SetsDiVA Archive at Upsalla University
LanguageEnglish
Detected LanguageEnglish
TypeStudent thesis, info:eu-repo/semantics/bachelorThesis, text
Formatapplication/pdf
Rightsinfo:eu-repo/semantics/openAccess
RelationExamensarbete INDEK ; 2012:127

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