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Garden Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than
Garden Growers Corp manufactures garden tools in a factory in Taneytown, Maryland. Recently, the company designed a collection of tools for professional use rather than consumer use. Management needs to make a good decision about whether to produce this line in their existing space in Maryland, where space is available or to accept an offer from a manufacturer in Taiwan. Data concerning the decision are:
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Part
Requirement Should Garden Growers Corp manufacture the comma garden tools in the Maryland facility or purchase them from the supplier in Taiwan? Explain.
The cost of manufacturing garden tools in the Maryland facility is
$
and the cost of purchasing
garden tools from the Taiwan supplier is
$
Garden Growers Corp
should
purchase the garden tools from the Taiwan supplier because it is
$
less
than the relevant costs to manufacture the garden tools in Maryland.
SKIP REQUIREMENT
Requirement What are some of the qualitative factors that Garden Growers Corp should consider when deciding whether to outsource the garden tools manufacturing to Taiwan?Select four that apply.
Fluctuations in the value of the NTD relative to the US dollar
Delivery lead times
Negative public and media reaction to not providing jobs in Maryland
Quality
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