Which of the following is a factor considered in make-or-buy decisions?
A) Available capacity
B) Core capabilities
C) Pattern of demand (steady or temporary)
D) Secrecy of technology
E) All of the choices are factors considered.

Question

Quizplus · Accepted Answer

All of the choices listed are factors that are considered in make-or-buy decisions. Available capacity is considered to determine whether a company has the resources to produce an item in-house. Core capabilities are assessed to determine whether the company has the necessary skills and expertise to produce the item. The pattern of demand is taken into consideration to determine whether the demand is steady enough to justify in-house production or if it is more cost-effective to outsource production. The secrecy of technology is evaluated to determine whether it is feasible to outsource production without compromising competitive advantage.

Which of the Following Is a Factor Considered in Make-Or-Buy