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the decision by a firm on whether to make a component or product itself or to buy it from an external supplier (see OUTSOURCING). The decision will depend upon the combined production costs and TRANSACTION COSTS of the alternatives. Sometimes a firm may adopt mixes of the two policies, producing some quantity of the product itself and buying the remainder, depending upon the relative costs of the sources and security of supply considerations. See TRANSACTION for a more detailed discussion. See INTERNALIZATION, VERTICAL INTEGRATION.
References in periodicals archive ?
It reads: "ex quo nobis fiet panis vitae" and "ex quo nobis fiet potus spiritalis." The word "fiet" is passive, and future, and can have the meaning of "become" or "to be made" or "to be made into (something)."
Recyclable: A product is recyclable, or able to be made into other products, only if is collected in your area and sent back to a manufacturer to do the recycling.