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Julia Smiley manages a fleet of 350 delivery trucks for Yankey Corporation. i. (Click the icon to view additional information.) Smiley performed the following analysis:
Julia Smiley manages a fleet of 350 delivery trucks for Yankey Corporation. i. (Click the icon to view additional information.) Smiley performed the following analysis: (Click the icon to view the outsourcing decision analysis.) Read the requirements. Requirement 1. Which alternative will maximize Yankey's short-term operating income? In order to maximize short-term operating income, Yankey Corporation should because the variable cost of outsourcing to FMS results in of Requirement 2. What qualitative factors should Yankey consider before making a final decision? A. Will FMS provide speedy maintenance and repairs? B. Will FMS provide the level of service Yankey needs? C. Will laying off five employees hurt the morale and productivity of other employees remaining with Yankey? D. Will FMS quickly and satisfactorily handle calls and questions from Yankey's employees who are driving the trucks? E. All of the above F. None of the above More info Smiley must decide whether the company should outsource the fleet management function. If she outsources to Fleet Management Services (FMS), FMS will be responsible for maintenance and scheduling activities. This alternative would require Smiley to lay off her five employees. However, her own job would be secure; she would be Yankey's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $9,500 per year to lease. FMS offers to manage this fleet for an annual fee of $400,000. Data table
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