The correct answer is A. evaluate the landed cost of the component.
When deciding whether to make a component internally or to outsource production, a company must consider the cost of producing the component in-house versus the cost of outsourcing it. This means taking into account not only the direct costs of production, but also the indirect costs associated with producing the component, such as overhead costs.
Furthermore, the company must also consider the landed cost of the component, which includes the cost of shipping, customs duties, and other fees associated with importing the component. This cost can vary depending on the location of the supplier and the country of origin.
Therefore, while selecting the lowest-price source or the source with the shortest lead time may seem like attractive options, they may not necessarily be the most cost-effective in the long run. It is essential to evaluate the landed cost of the component before making a decision.