Plushee Pal, Inc., manufactures plush toys in a facility in Cleveland, Ohio. Recently, the company designed a group of collectible resin figurines to go with the plush toy line. Management is trying to decide whether to manufacture the figurines themselves in existing space in the Cleveland facility or to accept an offer from a manufacturing company in Indonesia. Data concerning the decision are: Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. The cost of manufacturing 415,000 figurines in the Cleveland facility is $ and the cost of purchasing 415,000 figurines from Indonesian supplier is $ 1. Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. 2. Plushee Pal believes that the U.S. dollar may weaken in the coming months against the Indonesian rupiah and does not want to face any currency risk. Assume that Plushee Pal can enter into a forward contract today to purchase 28, 600 IDRs for $3.20. Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. 3. What are the some of the qualitative factors that Plushee Pal should consider when deciding whether to outsource the figurine manufacturing to Indonesia? Plushee Pal, Inc., manufactures plush toys in a facility in Cleveland, Ohio. Recently, the company designed a group of collectible resin figurines to go with the plush toy line. Management is trying to decide whether to manufacture the figurines themselves in existing space in the Cleveland facility or to accept an offer from a manufacturing company in Indonesia. Data concerning the decision are: Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. The cost of manufacturing 415,000 figurines in the Cleveland facility is $ and the cost of purchasing 415,000 figurines from Indonesian supplier is $ 1. Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. 2. Plushee Pal believes that the U.S. dollar may weaken in the coming months against the Indonesian rupiah and does not want to face any currency risk. Assume that Plushee Pal can enter into a forward contract today to purchase 28, 600 IDRs for $3.20. Should Plushee Pal manufacture the 415,000 figurines in the Cleveland facility or purchase them from the Indonesian supplier? Explain. 3. What are the some of the qualitative factors that Plushee Pal should consider when deciding whether to outsource the figurine manufacturing to Indonesia
