A product must be made in house if the relevant costs of making the product in house is less that the cost of buying the product.
Mangament also should consider ather issues in making the decision of wheather 2 buy or make:-
- realibilty of external supplier:-quantity, quality, delivery time, & price stability.
- specialist skills-available outside but not in house
- alternative use of resource
- social:- will redundancy occur if outsource
- customer reaction
- confidentiality.
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