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Koss Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision.
Koss Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision.
Cost to make it inhouse $ per unit.
Annual Demand units
Price quoted by the Asian company $ per unit plus a shipping cost of $ per shipment.
A Determine the number of shipments per year that the company can require the supplier to make in order to justify outsourcing.
B In addition to cost consideration, what other factors would weigh in decision making?
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