Question: In March 2 0 0 0 , lightning hit a power line in Albuquerque, New Mexico. The strike caused a massive surge in the surrounding

In March 2000, lightning hit a power line in Albuquerque, New Mexico. The strike caused a massive surge in the surrounding electrical grid, which in turn started a fire at a local plant owned by Philips Electronics and damaged millions of microchips. As a result, the mobile phone company Ericsson, which purchased the microchips from Philips and had no alternative source, encountered production problems that lasted for months and caused a loss of $400 million in sales. If Ericsson had been using in-house manufacturing, which advantage would have helped them in this scenario?
a. When components and raw materials involve intellectual property, making affords complete protection of the intellectual property.
b. Making components and raw materials in-house allows the company more control over deliveries.
c. In-house production is advantageous because it secures the supply source.
d. In-house sourcing is sometimes the only option for components and raw materials that are scarce, highly specialized, or particularly of national security concern.

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