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Grooly Food in Salt Lake City, Utah, manufactures and markets snack foods. Tessa Riley manages the company's feet of 180 delivery trucks Riley has been
Grooly Food in Salt Lake City, Utah, manufactures and markets snack foods. Tessa Riley manages the company's feet of 180 delivery trucks Riley has been charged with reengineering the floot-management function. She has an important decision to make (Click the icon to view the decision Rly has to make Assume that Rey's records show the following data concerning Greely Food's feet; Click the icon to view the data) Suppose that Fleet Management Services offers to manage Greely Food's Pleat for an annual fee of $274.000 Wrichi alternativer wilt maximize Greely Food's short-term operating Income? Complete the following analysis (Enter a "o" for any zero amounts Use a minun sign or parenthesen for subtracting numbers that are typically show andoted in parentheses in an Outsourcing decision ) Greely Food Outsourcing Decision Analysis Retain Outsoulce In-House to FMS Difference Annual ensing foo for software Arnul maintenance of trucks Annual salarios of five to management employees Fleet Management Services annual fee Total cost of fleet Operating income for Greely Food wil by if it outsources the feet-management function Data Table Book value of Greely.Food's trucks, with an estimated six-year life. Annual leasing fee for new fleet-management software Annual maintenance of trucks Fleet Supervisor Riley's annual salary Total annual salaries of Greely Food's five other fleet-management employees.... $ $ $ 3,000,000 8,200 156,000 64,000 130,000 $ 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 Greely Food'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? Fleet Management Services would take over the maintenance, repair and scheduling of Greely Food's fleet (but Greely Food would retain ownership). This alternative would require Riley to lay off her five employees. However, her own job would be secure, as she would be Greely Food's liaison with Fleet Management Services. Print Done
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