Make - or - Buy Approach for Manufacturing Firms

Make - or - Buy Approach for Manufacturing Firms
<Tab/>A manufacturer company usually has the option of either buying semi-finished goods for the production of their goods or making product itself. Such decisions are usually made by a company's top management as part of the overall planning for company operations. Firstly, before proceeding, let's define what make-or-buy approach is. According to Krajewski and Ritzman (1996), the decision whether to implement backward integration is often referred to as the make-or-buy decision. In other words, "choosing the products and serv…