Deciding whether to make a component or buy it from a competitor is called the ________.
A) facilities layout decision
B) capacity planning decision
C) make-or-buy decision
D) production decision

Question

Quizplus · Accepted Answer

The decision to make or buy a component is a strategic decision that involves weighing the advantages and disadvantages of producing the component in-house or outsourcing it from a competitor. Factors such as cost, quality, capacity, expertise, and availability of suppliers are considered before arriving at a decision. Therefore, the make-or-buy decision is the best choice for this scenario.

Deciding Whether to Make a Component or Buy It from a Competitor