Asked by Victoria Overbey on May 04, 2024
Verified
Identify the reasons for buying in the make-or-buy decision.
Make-Or-Buy Decision
A strategic decision that businesses use to determine whether they should produce an item internally or buy it from an external supplier.
- Perceive the essentiality of make-or-buy decision-making and the motivations driving these assessments.
Verified Answer
JJ
Jordyn JohnsonMay 11, 2024
Final Answer :
The reasons for buying in the make-or-buy decision include freeing management to focus on primary business; lower acquisition cost; preserve supplier commitment; obtain technical or managerial ability; inadequate capacity; reduce inventory costs; ensure alternative sources of supply; inadequate managerial or technical resources; reciprocity; and item is protected by patent or trade secret.
Learning Objectives
- Perceive the essentiality of make-or-buy decision-making and the motivations driving these assessments.
Related questions
Can an Organization's Plans for Vertical Integration Be Supported by ...
The Jabba Corporation Manufactures the Snack Buster Which Consists of ...
When a Firm Makes a Make Decision When Analyzing Whether ...
In Addition to the Facts Given Above, Assume That the ...
If Elly Industries Is Able to Obtain Part MR24 from ...