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When starting the production process for a product, managers must decide if they are going to...

When starting the production process for a product, managers must decide if they are going to make all the components in house, or outsource some parts to other vendors. This is commonly called a?

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Answer #1

The answer is Make-or-Buy Decision

Make-or-buy decision is an act of deciding whether to manufacture a product in-house or to purchase it from an external supplier.

A make-or - buy decision, also referred to as an outsourcing decision, compared the costs and benefits associated with manufacturing a desired product or service locally with the costs and benefits inherent with recruiting an alternative provider for the services with question. In order to adequately measure prices, a organization must consider all factors related to the purchase and storing of the products versus the production of the products in-house.

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