Make or buy analysis of Subcontracting work in Supply-chain pruduction in Ferrari S.P.A.

In this era of automotive history, a high degree of personalization is required, especially in the high-luxury requirement. As consequences of this trend, Automotive Companies must redesign their supply chain and manufacturing process, both to ensure the flexibility re- quired for the aforementioned personalization and to maintain as low as possible the complexity of the process and the cost of the manufacturing process. In particular, the efficiency of mixed-model assembly lines in the automotive industry depends heavily on the timely availability of a wide variety of parts—a task that has become increasingly complex. In these en- vironments, components differ not only in shape, weight and volume, but also in a growing number of variants, each with its own consumption rate, driven by client-specific requirements. Therefore, the variety of parts re- quires choosing the most efficient Assembly Line Feeding mode, with the goal of minimizing total operating costs. These costs primarily include labor associated with part preparation prior to assembly, picking and transporting parts to the line, assembly line operations, and storage. At the same time, part shortages, which can lead to costly line stops, must be carefully avoided. This thesis was developed at Ferrari SpA., one of the most famous brands in the sports car segment, and with the highest degree of complexity through the vastness of personalization available for a car, focusing on the economic analysis of which supply chain strategy is more cost-effective and efficient through various scenarios.