A decision to make a component internally versus through a supplier is a
A)special-order decision.
B)keep-or-drop a product-line decision.
C)make-or-buy decision.
D)Both a and c are correct.

Question

Quizplus · Accepted Answer

A decision to make a component internally versus through a supplier is a make-or-buy decision, which involves evaluating the costs and benefits of producing a component or service in-house versus outsourcing it to a supplier. This decision can have a significant impact on a company's profitability and competitiveness, and should be carefully considered based on factors such as cost, quality, capacity, and strategic alignment with the company's core competencies.

A Decision to Make a Component Internally Versus Through a Supplier