Make-Or-Buy Analysis
[pic 1]PROJECT PROCUREMENTMake-or-Buy AnalysisPrepared By: Bhupinder SainiDue Date: February 16, 2018MEMOHELP THE CHILDRENTo:Ralph CramdenFrom: Bhupinder SainiCC: Mona Brennan-ColesDate:February 16, 2018Re:Make-or-buy analysis for toy clowns.Comments:During the procedure of Fund Raising, before taking any decision I would like to compare a cost of making a clown or buying a clown so that we can decide which process is best for our Charity.Costs of manufacturing a clown:Material costs: $5000Costs for storage: $500
Costs for Volunteer Coordination: $500Costs for Volunteer recognition: $100Volunteer Labour costs: $0Total Costs: $6100Costs of Purchasing a clown:Costs for 1000 clowns: $9*1000= $9000Shipping costs: $0.50*1000= $500Costs for storage: $500