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Greely Food in Ashland, Kentucky, manufactures and markets snack foods. Sitar Lee manages the company's fleet of 220 delivery trucks. Lee has been charged with
Greely Food in Ashland, Kentucky, manufactures and markets snack foods. Sitar Lee manages the company's fleet of 220 delivery trucks. Lee has been charged with "reengineering" the fleet-management function. She has an important decision to make. (Click the icon to view the decision Lee has to make.) Assume that Lee's records show the following data concerning Greely Food's fleet: (Click the icon to view the data.) Suppose that Fleet Management Services offers to manage Greely Food's fleet for an annual fee of $276,000. Which alternative will maximize Greely Food's short-term operating income? Complete the following analysis. Operating income for Greely Food will_____by $ square if it outsources the fleet-management function. More Info Should she continue to manage the fleet in-house with the five employees reporting to her? To do so, she will have to acquire new fleet-management software to streamline GreelyFood's fleet-management process. Should she outsource the fleet-management function to Fleet Management Services, a company that specializes in managing fleets of trucks for other companies? FleetManagement Services would take over the maintenance, repair, and scheduling of GreelyFood's fleet (but Greely Food would retain ownership). This alternative would require Lee tolay off her five employees. However, her own job would be secure, as she would be GreelyFood's liaison with Fleet Management Services
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