In order to deliver the right thing at the right time with minimum cost, the small and medium sized manufacturers in Taiwan need to apply supply chain management. The reason and the way to implement the supply chain management and the quality of it were described in this paper. The small and medium sized manufacturers in Taiwan have to make decision as to buy or to make products when receiving orders from their clients. If the manufacturers decide to buy products, one supplier or many suppliers, supply one product or many products, order from local or global suppliers, one time delivery or many time deliveries, need to be considered If the manufacturers decide to make, first, they had better to ask one subcontractor or many subcontractors to make the products for them. Of course, price, quality and delivery time of subcontractors should meet client's needs. The manufacturers may ask one subcontractor or many subcontractors to make one product or many products. The manufacturers may make the products by themselves due to cost, quality, delivery time or after service reasons. They may use one production line or many production lines, one shift or more than one shift, work at regular time or overtime. Also, they need to know they deliver their products to their clients directly or indirectly. Besides they also need to pay attention to quality of products ordered and processes involved. Therefore, the quality of handling each process is very important. No matter how they decide, they need to have the complete, accurate and quick response information available. The purpose of this research is to suggest the appropriate model to make decision.