Make-or-buy is:
A) A method of comparing the benefit, function and cost of materials, components and work processes
B) One outsourcing strategy whereby companies use suppliers to help design new products
C) A strategy of attempting to influence demand for products and services
D) Buying in larger than required quantities, when the discount is greater than the carrying costs
E) A comparison of the value created internally versus if created by someone else

Question

Quizplus · Accepted Answer

Make-or-buy is a comparison of the value created internally versus if created by someone else. This involves an analysis of the costs and benefits of producing a product or service in-house versus purchasing it from an outside supplier. It helps companies determine whether it is more cost-effective to produce something in-house or to outsource it.

Make-Or-Buy Is