APICS Certified Supply Chain Professional (CSCP) — Question 334

The factors to consider in the make-or-buy decision include costs, proprietary knowledge, and:

Answer options

• A. design history.
• B. supply risk.
• C. inventory balance.
• D. system integration.

Correct answer: B

Explanation

Supply risk is a crucial factor in the make-or-buy decision as it pertains to the reliability and availability of suppliers. The other options, while relevant in different contexts, do not directly address the risks associated with outsourcing, which makes supply risk the correct choice.