APICS Certified Supply Chain Professional (CSCP) — Question 432

The make-or-buy decision typically would include considerations about:

Answer options

• A. feasibility of vendor-managed inventory (VMI).
• B. legal consequences of consignment.
• C. total ownership costs.
• D. cross-docking capabilities at supplier sites.

Correct answer: C

Explanation

The total ownership costs (C) are crucial as they encompass all expenses associated with acquiring and using a product, helping in the make-or-buy analysis. The feasibility of vendor-managed inventory (A), legal consequences of consignment (B), and cross-docking capabilities (D) are relevant but do not provide a comprehensive view of the financial implications involved in the decision.