Question

Which of the following is not a qualitative factor to be considered in a make-or-buy decision?

(A) Possible lost jobs from buying outside(B) supplier's ability to satisfy quality standards
(C) Direct materials and direct labor(D) costs from making Outside (E) supplier's ability to meet production schedule

Answer 1

A) Possible lost jobs from buying outside

Step-by-step explanation:

In a make-or-buy decision, technical aspects directly related to manufacturing are those that come into play: costs, schedules, quality, among others. A classic example is Apple. Because of the advantages in costs, quality, schedules and other aspects, Apple chooses to manufacture its products in China instead of manufacturing themselves or with a third party in the US, despite the loss of jobs that it generates.