Abstract
The decision of "Make or Buy" is always a big subject in every industry. It is an issue that takes careful consideration whichever stage the company is in, because it deeply effects the management and development of the company. (Anderson and Weitz, 1986; Gertner and Knez, 2000; McIvor and Humphreys, 2000) Nevertheless, it is more crucial to a potential rising industry in the resource allocation and allocation. (Fine, Vardan, Pethick and El-Hout, 2002) For instance, when a company is newly set up, the resource is insufficient due to limited time, man power and technical skills, and it will face the decision of "Make or Buy". (Coase, 1937; Penrose, 1980; Williamson, 1981). From the view of technical management, one wishes to build up a better mode of decision making on "Make or Buy". (Afuah, 2001; Fine and Whitney, 1996; Harrigan, 1984; Hayes and Abernathy, 1980) What is the reasonable profit we need to provide vendors without losing the company's profit if we choose "Buy"? Or how much resources it takes to "Make" would require specific theory and analysis as management reference. (Canez and Probert, 1999; Kumpe and Bolwijn, 1988; Manders and Brenner, 1995) This research takes the structure of positivism in "A framework for make vs. buy decisions." by K.W. Platts et al. against cases to be referred to in the company management. In the understanding of previous cases, the subjective appraisal is more often used in the company "Make or Buy" model, but the decision model of Platts offered a more confidence answer to us for now and further prediction on this subject through this research.