Asked by Victoria Overbey on May 04, 2024

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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.
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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.