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Why is buying standard items such as screws, bolts, rivets, and nails usually preferred to making them?
ABecause such items are exempt from inspection
BBecause suppliers deliver them without any charge
CBecause it is usually cheaper and easier than producing them
DBecause they cannot legally be produced in-house
Answer & Solution
Correct answer: C. Because it is usually cheaper and easier than producing them
1. Standard items are made in enormous volume by specialist producers.
2. Buying them is therefore usually cheaper and easier than producing them internally.
3. The same logic applies to purchasing larger components from another manufacturer, which can also be cost-effective.
4. Bought parts still have to meet quality standards, so option A is wrong to suggest inspection is skipped.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 10 "Achieving World-Class Operations Management", section Make or Buy?_
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