Developing supply chain strategy plays an essential role to retain competition among companies. This paper investigates the decision about which items to make to stock and which ones to make to order based on a mathematical model minimize the difference between the costs of the two approaches. The production environment is characterized by multiple activities such as purchasing, manufacturing, subassembly, and finished assembly. Through some numerical experiments the effect of different demand quantitates, customer delivery time and capacity limit are identified. The analysis provides an insight into the relationship between the supply chain costing and the strategic decision making.