Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 2, Problem 12P
Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics production. Four firms have responded to its request for bids, and CEO Mohan Rao has started to perform an analysis on the scores his OM team has entered in the table below·
Weights are on a scale from 1 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for the labor factor is shown as a w because Rao’s OM team cannot agree on a value for this weight. For what range of values of w, if any, is company C a recommended outsourcing provider, according to the factor-rating method?
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Rao Technologies, a California-based high-tech manufacturer, is considering outsourcing some of its electronics p roduction. Four firms have responded to its request for bids, andCEO Mohan Rao has started to perform an analysis on the scores his OM team has entered in the table below. Weights are on a scale from 1 through 30, and the outsourcing provider scores are on a scale of 1 through 5. The weight for the labor fac tor is shown as a w because Rao's OM team cannot agree on a value for this weight. For what range of values of w, if any, iscompany C a recommended outsourcing provider, according to the factor-rating method?
Rayyan manufacturing company is trying to decide whether to make-or-buy an accessory item for one of their products.
It is projected that this item will sell for $14 each. If the item is outsourced, there is virtually no cost other than the $10 per unit
that they would pay their supplier. Internally, they have a choice of making a process to produce the item which requires
an investment of $300,000 for design and equipment, but results in a $9 per unit cost. Regardless of whether the item is outsourced
or produced internally, there is a 60% chance that they will sell 250,000 units, and a 40% chance that they will sell 150,000 units.
ABC company plans to produce a new line of laptop computers. Management wants to decide either to purchase keyboard for the new computers from an outside supplier or to manufacture them in the factory. If they buy from the supplier each keyboard will cost 100$. However, if they set up the assembly process required within the company it will cost an initial investment of $100,000. After the set up company can produce each keyboard in the factory for $75. Calculate the break-even point. Comment which option is better below and above the break-even point.
Chapter 2 Solutions
Operations Management
Ch. 2 - Based on the descriptions and analyses in this...Ch. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - As a library or Internet assignment, identify the...Ch. 2 - Prob. 9DQCh. 2 - Prob. 10DQ
Ch. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1PCh. 2 - Within the food service industry (restaurants that...Ch. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Identify how changes in the external environment...Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Walker Accounting Software is marketed to small...Ch. 2 - Rao Technologies, a California-based high-tech...Ch. 2 - Prob. 1CSCh. 2 - Prob. 2CSCh. 2 - Prob. 3CSCh. 2 - Strategy at Regal Marine Video Case Regal Marine,...Ch. 2 - Prob. 1.2VCCh. 2 - Prob. 1.3VCCh. 2 - Prob. 1.4VCCh. 2 - Prob. 2.1VCCh. 2 - Prob. 2.2VCCh. 2 - Prob. 2.3VCCh. 2 - Prob. 3.1VCCh. 2 - Prob. 3.2VCCh. 2 - Prob. 3.3VCCh. 2 - Prob. 3.4VC
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