A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is providedbelow:For in-house manufacturing:For purchasing from supplier:Purchase price per part = $180a. For this information, use the Break-Even Excel template in MindTap to find the best decision if the demand is 6,000. Round your answers to thenearest dollar.Annual fixed cost = $100,000Variable cost per part = $140Total cost of production: $Total cost of outsourcing: $The best decision is to manufacture in-houseb. Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use theExcel Goal Seek tool. Round your answer to the nearest whole number.10000 parts220000350000 Profitability AnalysisCostRevenueQuantity10,000Fixed cost $100,000.00Unit cost$12.00Unit revenue$20.00Total Cost $220,000.00Total RevenueNet ProfitProfit or LossOutsourcing DecisionProduce In-HouseOutsourceQuantity 12,000Fixed cost 250,000.00Unit cost$20.00Fixed costUnit cost $35.00Technology Choice DecisionOption AOption BQuantity11,000Fixed cost $200,000.00Unit cost$18.60Fixed cost $100,000.00Unit cost$21.00Total In-House Production Cost 190,000.00$200,000.00Total Outsourced Cost 120,000.00-$20,000.00 Cost difference (In-House - Outsourced $70,000.00 Cost difference (Option A - Option B)LossEconomical Decision OutsourceEconomical DecisionTotal Cost Option A $404,600.00Total Cost Option B $331,000.00$73,600.00Option B

In-House manufacturingFixed Cost100000per yearVariable Cost140per tonOutsourcePurchase Price180per…

Answered: A firm is evaluating the alternative of…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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A large global automobile manufacturer is considering outsourcing the manufacturing of a solenoid used in the transmission of its SUVs. The company estimates that annual fixed costs of manufacturing the part in-house, which include equipment, maintenance, and management, amounts to $6.7 million. The variable costs of labor and material are $7.75 per unit. The company has an offer from a major subcontractor to produce the part for $9.75 per unit. However, the subcontractor wants the company to share in the costs of the equipment. The automobile company estimates that the total cost would be $2.7 million, which also includes management oversight for the new supply contact. a. How many solenoids would the automobile company need per year to make the in-house option least costly? The company must consume View an example Get more help. Q solenoids to make the manufacturing the part in-house option least costly. (Enter your response rounded to the nearest whole number.) & + ( < ) 0 Clear all…
how is the demand met? who are processing the products to meet the need ? how much of the need is now being met?
Describe the supply chain view of operations in terms of linkages between core and support processes.
What is the significance of the good supply chain operation for a manufacturing company. Explain in detail
As operations manager of Holz Furniture, you must make a decision about adding a line of rustic furniture. In discussing the possibilities with your sales manager, Steve Gilbert, you decide that there will definitely be a market and that your firm should enter that market. However, because rustic furniture has a different finish than your standard offering, you decide you need another process line. There is no doubt in your mind about the decision, and you are sure that you should have a second process. But you do question how large to make it. A large process line is going to cost $425,000; a small process line will cost $350,000. The question, therefore, is the demand for rustic furniture. After extensive discussion with Mr. Gilbert and Rosalita Ferrera of Ferrera Market Research, Inc., you determine that the best estimate you can make is that there is a two-out-of-three chance of high demand resulting in $600,000 profit from sales and a one-out-of-three chance of low demand…
It is mentioned globally that supply chains for service companies are very different from those used in manufacturing.eloborate
A firm is evaluating the alternative of manufacturing a part that is currently being outsourced from a supplier. The relevant information is provided below: For in-house manufacturing: Annual fixed cost = $75,000 Variable cost per part = $110 For purchasing from supplier: Purchase price per part = $140 For this information, use the Break-Even Excel template to find the best decision if the demand is 7,000. Round your answers to the nearest dollar. Total cost of production: $ ___________Total cost of outsourcing: $ ___________ The best decision is to ________ (manufacture in house or outsource?). Determine the break-even quantity for which the firm would be indifferent between manufacturing the part in-house or outsourcing it. Use the Excel Goal Seek tool. Round your answer to the nearest whole number. ________ parts
Select a business with which you are familiar, and identify examples of order qualifiers and winners. You might also research the businesses on the Internet or visit the library.
Before a new product can be launched, important decisions and steps need to be taken from an operations and financial management perspective. Using your own idea for a new product, write a report applying the following themes from your prescribed textbook to your product: • The components of the product (Chapter 11, section 11.4.2.2)• Stages in the design of the product (Chapter 11, section 11.4.2.3)• A source of short-term financing for the new product development (Chapter 14, section14.10.2).
Please explain the benefits of matching product requirements to manufacturing capabilities.
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What is the diagram that shows how a company’s strategy is delivered by a set of supporting activities?

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