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1 . A major corporation that develops and manufactures lawn care products such as fertilizer, herbicide, and seed is evaluating whether it should insource or
A major corporation that develops and manufactures lawn care products such as fertilizer, herbicide, and seed is evaluating whether it should insource or outsource the landscaping and lawn care of its corporate headquarters located outside of Augusta, Georgia. Currently, the landscaping is outsourced, and the suppliers performance has been excellent. In the Augusta area, there are a number of landscaping companies that have the capabilities to do this job. To maintain the corporate headquarters grounds, approximately hours per year are needed. The annual fixed costs to insource are estimated to be $ per year and the variable costs are $hour Bids from qualified landscaping companies range from a low of $ to a high of $ for a oneyear contract. The current suppliers bid is $year Apply the insourcingoutsourcing decision process to make a recommendation.
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