Make — Or Buy

A make-or-buy analysis is a strategic decision-making tool used to determine whether a company should produce a component or service in-house ("make") or purchase it from an external supplier ("buy"). This decision is crucial for optimizing costs, quality, and supply chain efficiency. Core Factors to Consider

Consider risks like supply chain disruptions, supplier reliability, or intellectual property loss. Make or Buy Analysis: A Comprehensive Guide for ... - CADDi make or buy

Compare the total cost of in-house production (direct materials, labor, overhead, equipment) with the cost of purchasing (purchase price, shipping, supplier management). A make-or-buy analysis is a strategic decision-making tool