ENTREPRENEURIAL OPERATIONS
SUPPLY CHAIN MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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outsourcing
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packaging
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purchasing
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warehousing
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None of these
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Detailed explanation-1: -Also referred to as an outsourcing decision, a make-or-buy decision compares the costs and benefits associated with producing a necessary good or service internally to the costs and benefits involved in hiring an outside supplier for the resources in question.
Detailed explanation-2: -Examples of Outsourcing A law firm might store and back up its files using a cloud-computing service provider, thus giving it access to digital technology without investing large amounts of money to actually own the technology.
Detailed explanation-3: -Examples of a Make-or-Buy Decision You contract an ABC Manufacturing Company to supply 6, 000 units of its MVP. This would also require 6, 000 units of a component essential for the MVP. The estimated cost of manufacturing these 6, 000 units of the necessary component is roughly 234, 000 USD.