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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?
Sales of vegetable dehydrators at Bud Banis' discount department store in St. Louis over the past year are shown below. Management prepared a forecast using a combination of expone
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