Make — Buy

Buying allows you to scale up or down quickly without being tied to expensive physical assets or long-term labor contracts.

Adding up all internal production costs (materials, labor, overhead) vs. the external purchase price and procurement costs. make buy

If the item is a critical part of your unique technology or "secret sauce," making it in-house protects your intellectual property . Buying allows you to scale up or down

To reach a decision, managers often perform a , which includes: managers often perform a

In-house production eliminates the risk of a supplier failing to deliver on time. When to "Buy"

Some firms choose to both make and buy the same item to maintain internal expertise while benefiting from market competition.