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Priscilla Tooley manages a fleet of 200 delivery trucks for Greely Corporation. Tooley must decide whether the company should outsource the fleet management function. If

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Priscilla Tooley manages a fleet of 200 delivery trucks for Greely Corporation. Tooley 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 Tooley to lay off her five employees. However, her own job would be secure; she would be Greely's liaison with FMS. If she continues to manage the fleet, she will need fleet-management software that costs $8,250 per year to lease. FMS offers to manage this fleet for an annual fee of $265,000. Tooley performed the following analysis: (click the icon to view the outsourcing decision analysis.) Requirements 1. Which alternative will maximize Greely's short-term operating income? 2. What qualitative factors should Greely consider before making a final decision? Requirement 1. Which alternative will maximize Greely's short-term operating income? In order to maximize short-term operating income, Greely Corporation should Requirement 2. What qualitative factors should Greely consider before making a final decision? | because the variable cost of outsourcing to FMS results in 0 A. Will FMS provide the level of service Greely needs? O B. Will FMS provide speedy maintenance and repairs? C. Will FMS quickly and satisfactorily handle calls and questions from Greely's employees who are driving the trucks? 0 D. Will laying off five employees hurt the morale and productivity of other employees remaining with Greely? O E. All of the above F. None of the above

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