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 generally speaking and work packages, Generally speaking, work pack...

Generally speaking, work packages: Answer Are assigned to one functional unit Are not assigned to one functional unit Must be assigned to two or more functional units

Explain secure an access database, 1. To delete the filter shown below clic...

1. To delete the filter shown below click Filter in the Sort & Filter group and select Clear Filter. Click Remove Filter in the Sort & Filter group. Right click on any number in th

Explain what is tims best defense, Tim is a director and officer of United ...

Tim is a director and officer of United States Sales, Incorporated. Tim makes a marketing decision that results in a dramatic decrease in profits for United States Sales and its sh

Explain middle class population, Consider the table below. This time, the h...

Consider the table below. This time, the historical profitability of eight locations is listed in the table. Devise a regression equation and predict the profitability of a new sit

Quantitative versus qualitative measurements, Quantitative Versus Qualitati...

Quantitative Versus Qualitative Measurements A variety of formulae can be used to determine productivity as illustrated. These are generally referred to as 'hard' or quantifia

Explain faster operating system for netbooks, Assume you work for a small f...

Assume you work for a small firm that developed a better and faster operating system for netbooks than Microsoft Windows. What strategy might the firm use to unseat Windows in this

Explain organizational strategic planning, Human resource practice competen...

Human resource practice competencies are a core set of competencies that: Answer A)relate to human capital development B) include knowledge and skills that make a company profitabl

Explain job design be used to create a motivated workforce, How can job des...

How can job design be used to create a more motivated workforce? Be specific.

Explain regression equation relating expected travel, Accountants at the fi...

Accountants at the firm Walker and Walker believed that several traveling executives submit unusually high travel vouchers when they return from business trips. The accountants too

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