Supplier Competition, Uncertainty, and Make-or-Buy Decisions

Abstract

The article provides information on the make-or-buy decisions involved in a buyer-seller relationship. Information is presented about contracting cost and market competition. A discussion is presented about the importance of market analysis and other factors considered by purchasing managers when making make-or-buy decisions. The authors examine the effects of competition, market conditions, and the relationship between buyers and sellers on business transactions. Production costs and technological changes affecting the business climate are mentioned.