Question: Jordan and Wajeeha are two project managers working on a big project that their company is starting next year. There have been discussions about Make
Jordan and Wajeeha are two project managers working on a big project that their company is starting next year. There have been discussions about Make or Buy decisions. Jordan and Wajeeha have different views on which approach to use for this project. There is only one factor to consider when making decision and it's cost-effectiveness. Numbers show that if the company buys, the cost would be 11.5 millions dollars plus trainings and management cost estimated at 18% of the total cost. If the company decides to make the product, the cost would be 13 millions plus 16% for trainings, and will receive 1.52 millions in grants for training. Jordan is proposing Make decision while Wajeeha proposes Buy decision. Which proposal should the company adopt in this case? Question 25 options: a) Jordan's because Make seems to be the most cost effective decision b) Wajeeha's because Buy seems to be the most cost effective decision c) None of both solutions seems to be cost effective d) Both solutions seem to be cost effective
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