In supply chain management, make-buy/outsourcing decisions can be aided by numerical analysis using tools such as break-even analysis.

Question

Quizplus · Accepted Answer

Break-even analysis can help in determining whether it is more cost-effective to make a product internally or outsource it to a third-party supplier. By calculating the break-even point, businesses can determine at what production volume it becomes more cost-effective to outsource.

In Supply Chain Management, Make-Buy/outsourcing Decisions Can Be Aided by Numerical