Question: Mr. Buzz Lightyear is the project manager for a satellite project. He calculates that an in-house solution will cost the company $320,000 to create the

Mr. Buzz Lightyear is the project manager for a satellite project. He calculates that an in-house solution will cost the company $320,000 to create the top-secret software package and based on OPA information, another $10,000 per month to maintain the software. Ms. Hrt Thickl, the purchaser for the project advises Buzz that it would cost the project $233,000 to purchase the software. However the supplier requires a maintenance plan for each program installed which will cost the project $15,000 per month. Once the satellite is built the company plans on orbiting the satellite in a low orbit around Earth for 730 days.

. a. What is OPA, and what is one OPA document that Buzz considered? 2 points

b. Based only on the information provided make a qualitative decision whether Buzz should make or buy the software solution. Please explain your decision based only on the information provided in the case study.

c. Based on the information above make a quantitative make or buy analysis decision.

d. From a quantitative analysis at what orbit duration would the buy solution be more cost-effective? e. After considering the qualitative and quantitative make or buy analysis should Buzz make or buy the software solution? Justify your answer by using only information provided in the case study.

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