The Make-or-Buy decision is an important one for many organizations. Traditionally it has been made using standard cost accounting methods. Recently Gardiner and Blackstone (1991) showed that basing the Make-or-Buy decision on the contribution per constraint minute (CPCM) criterion results in better decisions. In this paper, we show that the CPCM method guarantees the best solution only for the one-product, one-bottleneck problem.
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