Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
Loose-leaf for Operations Management (The Mcgraw-hill Series in Operations and Decision Sciences)
12th Edition
ISBN: 9781259580093
Author: William J Stevenson
Publisher: McGraw-Hill Education
Question
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Chapter 15, Problem 2.1CQ
Summary Introduction

Case summary:

The case deals about Company B that is considering the approach of its purchasing agent. Its purchasing agent suggested outsourcing the manufacturing process for outrigger bracket. The operations of Company B are highly integrated even though they are operating separately. Trailer, paint and metal fabrication, and sand blast are the three major divisions of the firm. In addition to that, following information is given:

Parts Outsourcing cost Company B's manufacturing cost
T-67 14.60 17.92
T-75 21.10 17.92
T-69 18.50 45.20
T-77 13.00 10.37
T-70 41.00 58.69
Total 108.20 150.10

To determine: The recommendation for the company by analyzing the information.

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