Make Or Buy Decisions Executive Summary Saturn

Make or Buy DecisionsName:Institutional affiliation:Executive SummarySaturn Designers plans to buy denim from Xintang, China. China is the largest producer of cotton as well as among the major countries that make denim. Denim is a strong fabric that is made of cotton and is used to produce products such as jeans, handbags, dresses, belts, and have recently been incorporated into the vehicle manufacturing industry. The company has chosen the importation from as the main method of getting denim because of the improving business and economic relations between the United States and China despite the political differences. Also, China offers cheap denim due to the superior dollar to Yuan, cheap labor, and improved utilization of technology in the manufacture of denim. The company targets customers between the age of 13 and 30 since the denim products are much popular among the age group. Buying denim is much economical than making them due to the cost implication in installing manufacturing plant, looking for loyal cotton suppliers, cost implications in training the employees, and the cultural differences. The tradeoffs include the