Question: Outsourcing ( Make - or - Buy ) Decision per unit of an auto air purifier follows. These cost predictions include $ 4 5
Outsourcing MakeorBuy Decision per unit of an auto air purifier follows.
These cost predictions include $ in fixed factory overhead averaged over units. purifier by percent.
Calculate the net advantage disadvantage of outsourcing the electric motors from Mini Motor Company.
Use a negative sign with your answer to indicate a net disadvantage of outsourcing if applicable.
b If it could otherwise rent the motorassembly space for $ per year, should it make or outsource this component?
Calculate the net advantage disadvantage of outsourcing the motors, assuming the space could be rented.
Use a negative sign with your answer to indicate a net disadvantage of outsourcing if applicable
c What additional factors should it consider in deciding whether to make or outsource the electric motors?
OThe quality of their own and the supplier's motors.
OThe dependability of the supplier.
OWhether Mini Motor has a track record of meeting its commitments.
OWhether they can depend on Mini Motor to supply motors for a number of years or whether it is attempting to use some temporarily idle capacity.
OAll of these.
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