Make-or-Buy Decision

A Make-or-Buy decision involves a company choosing whether to produce a product or component internally (make) or to purchase it from an external supplier (buy). The goal is to determine which option is more cost-effective, efficient, and aligns with the company's resources and strategic goals. Factors considered include production costs, quality, lead time, and capacity. Making the decision helps optimize resources, reduce costs, and improve overall business operations by balancing the benefits and risks of manufacturing in-house versus outsourcing.