A decision to make a component internally versus through a supplier is a
A) special-order decision.
B) keep-or-drop a product-line decision.
C) make-or-buy decision.
D) both a and c.

Question

Quizplus · Accepted Answer

The decision to make a component internally versus through a supplier is a make-or-buy decision. This decision involves deciding whether to produce a product or service in-house or to outsource it to a supplier. The best choice would depend on several factors such as cost, quality, lead time, and capacity utilization. A thorough analysis of these factors should be made before deciding whether to make or buy the component.

A Decision to Make a Component Internally Versus Through a Supplier