Explain what should susan recommend, Operation Management

Assignment Help:

Susan Gilbert, a purchasing agent for Wisconsin Plastic Inc (WSI) is reviewing quotations from suppliers for a new plastic gear. Susan plans to either place an order for 12000 years from a supplier with the least cost quotation or recommend that WSI purchase the necessary equipment and make the gear itself.

Relevant data for this make-or-buy decision are found below-

Make Buy

Fixed Cost of Equipment $60000 0

Variable cost per part $16 $20

What should Susan recommend? Make or Buy? Why? Choose one.

What should Susan recommend if the order size is increased by 25%? Make or Buy? Why?


Related Discussions:- Explain what should susan recommend

Explain sophicated technology and industry benchmarking, Health care consta...

Health care constant changes are a result of continuing trends in regulatio, policy, patient and provider advocacy efforts, as well as increasingly sophicated technology and indust

Explain matrix structure and provide examples, Some people argue that the m...

Some people argue that the matrix structure should be adopted only as a last resort because dual chains of command can create more problems that they solve. Discuss and provide exa

Explain extensive evaluation of personal records revealed, President of Was...

President of Washington Enterprise and controlled 16 plants throughout the South. Extensive evaluation of personal records revealed the name Sid Smith, assistant plant manager in A

Explain step of the risk identification process in a project, Describe the ...

Describe the outputs and subsequent steps of the risk identification process in a project.

Explain government use to facilitate economic development, Reflect upon the...

Reflect upon the IT strategies that are used to encourage economic development. Select two strategies and discuss how economic factors affect the strategies that a government may u

Explain proposed investment in the warehouse extension, What overall recomm...

What overall recommendations would you make to Francis Lamouche about the proposed investment in the warehouse extension?

Explain how are scheduling and productivity related, Scheduling techniques ...

Scheduling techniques are designed to disaggregate the master production schedule into time-phased daily or hourly activities. A detailed production schedule must include when and

What unique challenges do research provide for km, Critical thinking questi...

Critical thinking questions: what unique challenges do research and development labs provide for KM implementation? What is the benefit of MITRE's evolutionary approach to KM?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd