Ross 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 in

$-$

house

$=$

$$$

$9$

$6$

$$per unit.

Annual Demand

$=$

$5$

$0$

$0$

$,$

$0$

$0$

$0$

$$units

Price quoted by the Asian company

$=$

$$$

$9$

$0$

$$per unit plus a shipping cost of $

$2$

$0$

$,$

$0$

$0$

$0$

$$per

shipment.

$1$

$.$

$2$

A

$.$

$$Determine the number of shipments per year that the company can require the supplier to

make in order to justify outsourcing.

$1$

$.$

$2$

B

$.$

$$In addition to cost consideration, what other factors would weigh in decision making?

$1$

$.$

$3$

$.$

$$In decision making related to engineering projects, based on economics, the most important

non

$-$

economic factor is: