OM (with OM Online, 1 term (6 months) Printed Access Card)
6th Edition
ISBN: 9781305664791
Author: David Alan Collier, James R. Evans
Publisher: Cengage Learning
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Question
Chapter 6, Problem 7PA
a
Summary Introduction
Interpretation:Decisions needs to be made whether company should go for outsourcing or in-house production.
Concept Introduction: The total cost of production or outsourcing and break-even point are useful quantifiable measures which helps company in making operational decisions which affects the company profits.
b
Summary Introduction
Interpretation:Decisions needs to be made whether company should go for outsourcing or in-house production and todetermine break even quantity.
Concept Introduction: The total cost of production or outsourcing and break-even point are useful quantifiable measures which helps company in making operational decisions which affects the company profits.
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Students have asked these similar questions
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
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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.
Develop a high-level suppliers, inputs, process, outputs, and customers (SIPOC) process map, identifying the quantitative and qualitative variables that are likely to contribute to the conflict.
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What is the break-even quantity? Round your answer to the nearest whole number.
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Should the firm make the 9,500 units in-house or outsource?
Firm should produce the molding .
Chapter 6 Solutions
OM (with OM Online, 1 term (6 months) Printed Access Card)
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