Cost-Effectiveness Analysis and Outsourcing Decision at Ducati

Requirements:

1. Perform a cost-effectiveness analysis for Ducati to decide on outsourcing its motorcycle assembly.

Option	Total Costs ($)
In-House Assembly	15,000,000
Outsourcing Assembly	12,000,000

• Compare the total costs of outsourcing motorcycle assembly versus maintaining in-house production at Ducati.
• Evaluate the potential cost savings and risks associated with outsourcing assembly operations.
• Recommend Ducati's optimal strategy based on cost-effectiveness analysis and long-term business objectives.