Question
Sinbo Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation. A high-use component can be purchased
Sinbo Electronics is trying to reduce supply chain risk by making more responsible make-buy decisions through improved cost estimation. A high-use component can be purchased for $28 per unit with delivery promised within a week. Alternatively, Sinbo can make the component in-house and have it readily available at a material cost of $3 per unit if equipment costing $130 comma 000 is purchased. Labor and other operating costs are estimated to be $33 comma 000 per year over the study period of 3 years. Salvage is estimated at 11% of the first cost, and the interest rate is 7% per year. Which one of the following values is closest to the break-even quantity? Select one: a. 4 comma 628 b. 2 comma 777 c. 8 comma 264 d. 3 comma 124 e. 3 comma 656
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