Question: Problem 5 - 8 ( Static ) A manager is trying to decide whether to purchase a certain part or to have it produced internally.
Problem Static
A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $ per unit and an annual fixed cost of $; the other would entail a variable cost of $ per unit and an annual fixed cost of $ Three vendors are willing to provide the part. Vendor A has a price of $ per unit for any volume up to units. Vendor has a price of $ per unit for demand of units or less, and $ per unit for larger quantities. Vendor offers a price of $ per unit for the first units, and $ per unit for additional units.
a If the manager anticipates an annual volume of units, which alternative would be best from a cost standpoint? For units, which alternative would be best?
tableTC for units,TC for units,Int:Int. :Int:Int. :Vend AVend AVend BVend BVend CVend CVendor
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