Solution-Calculate economic feasibility of make or buy

Calculate economic feasibility of make or buy

Assignment Help Project Management

Reference no: EM133347571

Your manufacturing team informs you that they have found a way to increase the size of the manufacturing run from 10,000 to 18,000 units in increments of 2,000 units. However, the setup cost will be $150,000 and the defects will cost the same $120 for removal and repair.

1. Calculate the economic feasibility of make or buy.

2. Should the probability of defects change if we produce 18,000 units as opposed to 10,000 units?

3. Would your answer to question 1 change if the company management believes that follow-on contracts will be forthcoming? What would happen if the probability of defects changes to 15 percent, 25 percent, 40 percent, 15 percent, and 5 percent due to learning-curve efficiencies?

Reference no: EM133347571

Questions Cloud

Performs grooming and minor veterinary services : Your best friend is considering opening Emerald City, a canine day- and long-term care business that also performs grooming and minor veterinary services.

Integrated into your capstone stakeholder register : Who would you define as project stakeholder? How can these insights be integrated into your capstone Stakeholder Register?

How does confirmation bias affect your decision making : How does confirmation bias affect your decision making? How does Narrow framing "the tendency to define our choices too narrowly effect our decision making?

Market research-controlling risk in decision making : What quality parameters would you require from the product development department to ensure they provide a quality product/service? Explain.

Calculate economic feasibility of make or buy : Calculate the economic feasibility of make or buy. Should the probability of defects change if we produce 18,000 units as opposed to 10,000 units?

Provide importance for network diagram in project management : Provide the importance for a network diagram in project management? Why is a risk management plan and risk register important?

Essay on your own interest in grants : Write essay on your own interest in grants. What project are you interested in getting funded? What do you imagine you will accomplish as result of grant award?

Describe team problems that are evident : Describe the team problems that are evident, as well as any that are hidden from team members. How well was the team positioned for success.

Was project part of larger portfolio or program of projects : Write one sentence that describes the objective of the project. Was the project part of a larger portfolio or program of projects?

User Account

All Pages

Calculate economic feasibility of make or buy

Reference no: EM133347571

Reference no: EM133347571

Questions Cloud

Reviews

Write a Review

Project Management Questions & Answers

Create a project schedule and align resources

Managerial roles and gap analysis

Questionaire on project management

Describe the market growth rate for product

Prepare a work plan and project schedule - gantt chart

Project risk management approach

Black-scholes options pricing model

Describe the features or characteristics of product

Write paper on inventory management system

Analysis of the overall project risk

Investment and performance analysis

Distribution strategy and project management

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT