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TA Mai Tuyền cost-effective when handled by specialized external providers, allowing the restaurant to focus on food innovation and customer service. Conclusion: While the “make-or-buy” decision typically focuses on whether to internally produce a specific item, outsourcing involves broader strategic delegation of entire functions or processes. Both require careful cost-benefit analysis, including consideration of quality, control, risk, and strategic importance. A well-balanced make-buy/outsourcing strategy can enhance supply chain efficiency, reduce overhead, and strengthen a firm’s competitive positioning. Question 3: What are the six sourcing strategies in supply chain management? What are the advantages and disadvantages of each? In supply chain management, sourcing strategy refers to how a firm selects and manages its suppliers. Choosing the right sourcing strategy is essential because it directly affects cost, quality, innovation, and the resilience of the supply chain. Heizer and Render (2014) describe six main sourcing strategies, each with unique advantages and drawbacks depending on the business context: 1. Many Suppliers Strategy In this traditional approach, the buyer purchases a product or component from multiple competing suppliers. The focus is on price-based competition. ● Advantages: ○ Encourages competitive pricing ○ Reduces dependency on a single supplier ○ Increases flexibility and capacity during demand surges ● Disadvantages: ○ Lower supplier loyalty ○ Difficult to achieve long-term quality improvements ○ Higher administrative overhead Example 1: Large automotive companies like General Motors use many suppliers for commodity parts like bolts or nuts, which helps drive down costs. This approach ensures price competitiveness but may hinder collaborative innovation due to transactional relationships. Example 2: Retailers may source the same product from different manufacturers to ensure supply continuity during peak seasons. While effective in balancing supply risk, quality consistency can be an issue. 2. Few Suppliers Strategy Mai Tuyền: TA BRM, POM (Pro Oper Mana), Log BA, Quality mana Thesis, UWE Top Up, Data_SmartPLS_SPSS