Primary navigation:

QFINANCE Quick Links
QFINANCE Reference
Add the QFINANCE search widget to your website

Home > QFINANCE Dictionary > Definition of buy or make

Definition of

buy or make

Operations & Production

choice between making or buying needed item a decision on whether to produce goods internally or to buy them in from outside the organization. The goal of buy or make is to secure needed items at the best possible cost, while making optimum use of the resources of the organization. Factors influencing the decision may include: cost, spare capacity within the organization, the need for tight quality and scheduling control, flexibility, the enhancement of skills that can then be used in other ways, volume and economies of scale, utilization of existing personnel, the need for secrecy, capital and financing requirements, and the potential reliability of supply.

Related definitions of "buy or make"

buy or make - Related Articles
  • Capital Structure: A Strategy that Makes Sense

    Best Practice

    Practitioners might suggest that such a change could have adverse effects if the company is under duress or when markets are in tumult. Some would argue that the funds realized from the equity offering make this a poor strategy. Instead, the company should ride out the bad times or bad markets
    By John C. Groth

  • Engaging Your Stakeholders: How To Make Allies of Investors and Activists

    Best Practice

    You begin by making yourself predictable. The strongest rhetorical structure through which CEOs can speak to investors is one in which they show that a plan set forth a year ago (or two years or six months ago) was successfully executed and that the results were as forecast—or better.
    By Peter Firestein

  • New Dollar Area: The Makings of the Mess


    in value-subtracting investment. Transition to a market economy exposed a Chinese savings glut. The pegged and undervalued yuan allowed China to waste its excess savings by lending to the United States, so that Americans could buy its excess products. It thereby avoided, if perhaps only for a time
    By Brian Reading

  • Why Smart People Make Big Money Mistakes and How to Correct Them

    Finance Library

    Why Smart People Make Big Money Mistakes and How to Correct Them explores how we spend, save or invest money, to expose the common mistakes made and how they can be avoided. Using anecdotal information, the reader is invited to assess themselves and their own actions, and offered advice


Definitions of ’buy or make’ and meaning of ’buy or make’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’buy or make’ and other financial terms with our online QFINANCE Financial Dictionary.

Back to top

Related Blog Posts

More related Blog results