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Currently Jupiter is trying to reduce its supply chain risk by making more responsible make- or-buy decisions through improved cost estimation. At the same time,
Currently Jupiter is trying to reduce its supply chain risk by making more responsible make- or-buy decisions through improved cost estimation. At the same time, it is also seeking to maximize its profit A high-valued component for making its best-selling product can be purchased for $33 per unit and has expected usage of 7840 units per year. Alternatively, Jupiter can make the component in-house and have it readily available at a cost of $11.5 per unit, using a machine purchased by $213,000. It is predicted that the machine has a depreciable amount of $13,000 at the end of year 6. Labor and other maintenance costs are estimated to be $53,560 per year over the study period of 8.5 years. Jupiter uses SYD method in order to calculate the depreciable costs for all the equipment it has. The fixed cost is $43,661 per month and the variable cost is $54 per unit, (i=17%). i) Choose the best alternative to reduce the supply chain risk. il) Show that the selected alternative maximizes its profit. SECTION-2 The answer script of this section will be uploaded to the concerned course teacher's soogle
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