Answer (A) is correct . The maintenance of long-run relationships with suppliers may become paramount in a make-or-buy decision. Abandoning long-run supplier relationships may cause difficulty in obtaining needed parts when terminated suppliers find it advantageous not to supply parts in the future.
Answer (B) is incorrect because If quality is important, one can ordinarily control it better in one’s own plant.
Answer (C) is incorrect because The availability of idle capacity more likely favors the decision to make.
Answer (D) is incorrect because The importance of quality control and the availability of idle capacity are qualitative factors favoring the make choice in an insourcing vs.?outsourcing.
|
