What factors must a firm consider while addressing the make or buy decision?

2 ANSWERS

1. Guest8018
   

   volume
   time
   cost
   quality
   capacity
   nature of an organisation

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2. Guest6289
   

    A firm must take the decision of manufacturing a product,  when it has all the important  resources to produce it. This theory applies on the buying of  raw materials or materials used in production. The Make or Buy Decisher firsion is inherently dependent on what kind of benefits are associated.

   
   

   A company should  make a product when the conditions are extremely favorable,  like it has low cost raw material, cheap labor, all the machinery installed and excellent relations with the stakeholders. Whereas if all the aforementioned  issues create a problem, in such a situation the company must make an immediate  decision  to purchase that product.

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