3 Supply Chain Management Encompassing Discipline Ensures Transformation Materials Inputs Q34229186

3. Supply Chain Management is an all encompassing disciplinethat ensures transformation of materials (inputs) into finishedgoods and services (outputs); (c) Describe, compare and contrastNumerical and Non-Numerical models as methods of appraising CapitalExpenditure when make or buy decisions are being confronted.

Expert Answer

The main methods of appraising the capital expenditure in orderto take feasible decisions or to invest in profitable projects:

Non Numerical Methods:

1) Sacred Cow :
This is the method wherein the decision related to buying orselling is taken after consulting and taking the opnion of seniorand he powerful official in the company who makessuggestions.
The sacredness of the project basically reflects that