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Engineering work: 4 5 0 hours, $ 4 5 ? hour. ( Although the work decreases by 4 5 0 hours, the engineer assigned to
Engineering work: hours, $ hour. Although the work decreases by hours, the engineer assigned to the track assembly line also spends time on other products, and there would be no reduction in his salary.
fewer material moves at $ per move.
Required:
Ignore the special study, and determine whether the track assembly should be produced internally or purchased from the supplier.
Produced internally
Now, using the special study data, repeat the analysis.
It is $ expensive to buy outside.
Which of the listed items is not a qualitative factor that would affect the decision?
After reviewing the special study, the controller made the following remark: "This study ignores the additional activity demands that purchasing would cause. For example, although the demand for inspecting the peft on the production floor decreases, we may need to inspect the incoming parts in the receiving area. Will we actually save any inspection costs?" Is the controller right?
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