A company is deciding whether to produce a new gadget at a plant located in a country
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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.
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c The instock probability requirement for the product is high Pro...View the full answer
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Related Book For
Operations Management
ISBN: 9781260547610
2nd International Edition
Authors: Gerard Cachon, Christian Terwiesch
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