Direct supervision allows for tighter quality standards that external vendors might not meet.
Adding up all internal production costs (materials, labor, overhead) vs. the external purchase price and procurement costs. make buy
If the manufacturing process requires specialized skills or niche technology you don't possess, buying from experts is safer. Direct supervision allows for tighter quality standards that
Some firms choose to both make and buy the same item to maintain internal expertise while benefiting from market competition. make buy
Buying allows you to scale up or down quickly without being tied to expensive physical assets or long-term labor contracts.
cost analysis for 'make-or-buy' decisions for manufacturing industries