Making All or Part of a Product In-House Is Most

question 71

Multiple Choice

Making all or part of a product in-house is most beneficial when a firm wants to:

• A) build valuable capabilities over time.
• B) labor costs are more at the firm's location.
• C) increase strategic flexibility.
• D) start business in more geographical locations.

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Definitions:

Railroads

Transportation systems comprising tracks, trains, and supporting infrastructure that serve as a method for moving goods and people over long distances.

Postponement

The delay of any modifications or customization to a product as long as possible in the production process.

Accumulation

The process of gradually gathering or increasing amounts of something over time.

Inventory

The stock of goods or materials that a business holds at any given time, including raw materials, work-in-process, and finished goods.