Reference: Case Study $1$

Ross Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision:

Cost to make the component in$-$house $=$$$96$ per unit.

Annual Demand $=500,000$ units

Price quoted by the Asian company $=$$$90$ per unit plus a shipping cost of $$20,000$ per shipment.

$1\mathrm{.}2$A$.$ Determine the number of shipments per year that the company can require the supplier to make, in order to justify outsourcing. $(6$ points$)$

$1\mathrm{.}2$B$.$ In addition to cost considerations, what other factors would weigh in decision making? $(6$ points$)$