Determining which components and raw materials should be produced in-house and which components and raw materials should be acquired from suppliers is known as the _____ decision.
A) sale-or-keep
B) manufacture-or-sale
C) sink-or-swim
D) make-or-buy
E) build-or-break

Question

Quizplus · Accepted Answer

Make-or-buy decision is the process of deciding between producing an item in-house or buying it from an external supplier. This decision is based on factors such as cost, quality, time, and availability. It is imperative for a company to evaluate all these factors before deciding whether to make or buy a component or raw material. However, to maintain flexibility, a company can opt for a hybrid approach where it produces some components in-house and buys some from external suppliers.

Determining Which Components and Raw Materials Should Be Produced In-House