The make-or-buy decision involves deciding whether a firm should make or buy the component parts that go into the final product.

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The make-or-buy decision is a strategic and operational decision that involves deciding whether a firm should produce (make) or purchase (buy) the goods or services that it needs to produce its final product or deliver its services. This decision is based on various factors, such as cost, quality, technology, availability of resources, capacity, and expertise. Making or buying components can have different implications for the company's production costs, control over quality, flexibility, risk, and competitiveness, among other factors. Therefore, it is an important decision that requires careful analysis and evaluation of all the relevant factors.

The Make-Or-Buy Decision Involves Deciding Whether a Firm Should Make