Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Tech company makes three types of products the XE, JE and the YO .All the products are manufactured in three main stages of production: the
Tech company makes three types of products the XE, JE and the YO .All the products are manufactured in three main stages of production: the build stage the program stage and the test stage. The work is technical and requires the use of skilled labour which is in short supply. Due to the shortage of labour supply company is considering an option of outsourcing. The Production Manager of the Company is reviewing the operations of the company with a view to making operational decisions for the next year. Details of the products manufactured by the Company are given below: Product Demand (units) Choose between) XE JE YO 2,200 to 2400 2600 to 2700 4,000 to 4500 Variable cost to make (OMR per unit) 50 60 90 Buy-in price (OMR per unit) 53 62.5 88 Labour Hours required per unit 3 Hours 2Hours 1 Hour Required: a) b) c) Based on the above information, which products should the company make and which should it buy? 5 Marks The availability of labour is limited to 11000 hours. Based on the availability of the limited labour hours, rank the products and suggest which product should be outsourced and how much.( Show all the steps) 15 Marks Evaluate the main factors that should be considered while making a decision of outsorcing. 10 Marks (Total -30 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started