Most support to produce in the high-cost location

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Reference no: EM131689855

A company is deciding whether to produce a new gadget at a plant located in a country close to consumers at a higher labor cost and shorter lead time or to outsource it to a country with a low labor cost but a longer lead time. All else being equal, which of the following considerations would provide the most support to produce in the high-cost location?

a. The holding costs per unit are low.

b. Transportation costs per unit per km are low.

c. The in-stock probability requirement for the product is high.

d. customers are willing to wait for delivery.

Reference no: EM131689855

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