Questions1) How is the output of a standard breakeven analysis model interpreted to yield the make-or-buy decision? What critical strategic factors should an operations manager consider in ensuring the efficacy of any outsourcing decision beyond just cost? In your answer provide an example to illustrate the key points that you are making.

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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Questions1) How is the output of a standard breakeven analysis model interpreted to yield the make-or-buy decision? What critical strategic factors should an operations manager consider in ensuring the efficacy of any outsourcing decision beyond just cost? In your answer provide an example to illustrate the key points that you are making.

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