A manufacturer produces a product with high fixed costs and utilizes proprietary technology. The best option for them would be to

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Quizplus · Accepted Answer

Since the product is utilizing proprietary technology and has high fixed costs, it is best for the manufacturer to make the product internally. This would allow them to maintain control over the technology and production process, ensuring quality and consistency. Outsourcing the product entirely may result in a loss of control and potential leaks of proprietary information. Pursuing a hybrid make-outsource policy may not be feasible for a product with high fixed costs, as it may not be cost-effective to produce a portion of the product in-house and outsource the rest. Outsourcing the manufacturing of key components may also result in a loss of control over the production process and quality. Therefore, making the product internally is the best option for this manufacturer.

A Manufacturer Produces a Product with High Fixed Costs and Utilizes