Question

"Should we make or buy this component?" is an issue in the __________ critical decision area.

a) Quality
b) Capacity
c) Inventory
d) Supply Chain Management\

Answer 1

The decision of whether to make or buy a component is an important consideration in Supply Chain Management (d).

Step-by-step explanation:

The issue of whether to make or buy a component is an important consideration in the Supply Chain Management (d) critical decision area. Supply Chain Management involves managing the flow of goods and services from suppliers to customers, and making the decision to make or buy a component directly impacts this process. By making the component in-house, a firm has more control over the quality, costs, and delivery time. On the other hand, buying the component from an external supplier can save costs and allow the firm to focus on its core competencies.