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David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of 1 2 restaurants and employs two
David is trying to decide if it makes sense to outsource the purchasing function. He has a chain of restaurants and employs two buyers at an annual fixed cost of $ David estimates that the variable cost of each purchase order placed is $ An outsourced company will perform the purchasing function for a fixed annual fee of $ plus $ for each purchase order placed. Last year, David placed purchase orders. show your work
What was the inhouse purchasing cost last year?
What would the cost be if outsourced?
If David estimates it will place purchase orders next year, should David outsource?
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