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

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

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter6: Target Markets: Segmentation And Evaluation

Section: Chapter Questions

Problem 4SC

See similar textbooks

Similar questions

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 = $85,000 Variable cost per part = $110 For purchasing from supplier: Purchase price per part = $120 For this information, use the Break-Even Excel template to find the best decision if the demand is 5,500. Round your answers to the nearest dollar. Total cost of production: $ Total cost of outsourcing: $ The best decision is to . 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.
Also, what are the possible strategies that could be utilized once the Manufacturing company becomes established? Identify the strategies by name, and provide a brief explanation for each type of strategy suggested. Provide justification for your advice with respect to each strategy.
Canon, a Japanese manufacturer of photographic equipment, decided against offshoring and kept its manufacturing and new product development processes in Japan, which has relatively high labor costs. In contrast, GM, headquartered in the United States, has a joint venture with Shanghai Auto Industry Corporation (SAIC) to produce cars in China. Givenour discussion of outsourcing, offshoring, next-shoring, and supply chain design, discuss how these two seemingly diverse decisions could be supportive of each company’s operations strategy.
Conduct an online search about a current event that is affecting the supply chain. Discuss and explain the impact it could have on existing or upcoming projects in the industry of your choice. Note: Include information from at least two sources, including this module's readings of "Project Management: The Managerial Process, 8th Edition by Erik Larson and Clifford Gray, and other credible sources you have researched to support your answers.
Outsourcing is a popular business strategy involving hiring third-party services for customer support, payroll management, and software development. While it can increase cost savings and productivity, it has some problems that need to be addressed.Critically evaluate 10 difficulties encountered with outsourcing and propose solutions to the issues raised.
Read the following extract and answer the questions that follow: Once the decision has been made to outsource a product or service, firms will typically use a process known as strategic sourcing to decide to whom to outsource the product or service, as well as the structure and type of relationship that should be established. A sourcing strategy is typically focused on a category of products or services, and for that reason, the strategy is sometimes called a category strategy. Process mapping is a tool that reduces processes to their component parts or activities and helps identify and then eliminate non-value-added activities (waste) or delays within a process. Process mapping is valuable in purchasing, for example, when attempting to streamline the flow of material or information between suppliers and a purchaser Explain the criteria that is used to determine whether a project successfully completed
by using SOWT analysis, Choose a facility or company and then analyze its current situation using the SOWT model. What results or recommendations do you see fit?
The Vera Molding company has two alternatives for meeting a customer requirement for 7,500 units of a specialty molding. If done in-house, fixed cost would be $200,000 with variable cost at $32 per unit. Alternative two is to outsource for a total cost of $78 per unit. What is the break-even quantity? Round your answer to the nearest whole number. _________ units Should the firm make-in-house or outsource? Round your answers to the nearest dollar. Total cost if done in-house: $ ________________ Total cost if outsourced: $ ________________ So, the firm can save $ ____________ by producing in- house. A company has two alternatives for meeting a customer requirement for 8,000 units of a specialty molding. If done in-house, fixed cost would be $345,000 with variable cost at $35 per unit. Alternative two is to outsource for a total cost of $80 per unit. Determine the break-even point. Round your answer to the nearest whole number. ______________ units Determine if they should…
How does this supply chain differ from that in a manufacturing firm?
Research Jp Morgan Chase company and Discuss the likely sources of economies of scale that are the foundation of their larger size by helping them think of additional sources or expand on their descriptions.
(trends and challenges of outsourcing in business)this is the topic( create the business letter and memo of this topic)
In recent article in the The Economist, there is a statement of advice to companies, who outsource products or services: “they need to think harder about what is their core business, and what is peripheral.” What types of problems do you think they are talking about? In your answer, present at least five (5) problems that companies should consider when outsourcing products or services.