Some of the reasons for in-house manufacturing include quality and control over the quality. Another reason may include the creations of brand images, having a metal latch with company’s own stamp creates a brand values, another manufacturer ‘s stamp often lowers the brand images. This is same as having another brand’s logo on the battery of a mobile phone.
Some of the reasons for not doing it in-house may include the fixed costs associated with them, company’s lack of capability in the manufacturing of the latches as well as the variable costs associated with the latches. If the cost per piece is significantly for the same quality level, the inhouse production may not be a good idea.
Some of the key question many include the following:
What is the expected quantity to manufacturer,
Fixed cost and variable costs associated with the productions,
Is company carries the capability to manufacture the latches,
What is the benefits of outsourcing option
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