Henri of Henris French Cuisine (HFC), a chain of 12 restaurants, is trying to decide if it
Question:
(a) What was the cost last year to HFC when doing the purchasing in-house?
(b) What would the cost have been last year had HFC used Value-Buy?
(c) What is the indifference point for the two alternatives?
(d) If HFC estimates it will place 1600 purchase orders next year, should it use VB?
(e) What additional factors should be considered by HFC?
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