Question
Use the accompanying outsourcing decision data to compute the cost of in-house manufacturing and outsourcing for the following levels of demand: 800, 900, 1,200, 1,500.
Use the accompanying outsourcing decision data to compute the cost of in-house manufacturing and outsourcing for the following levels of demand:
800,
900,
1,200,
1,500.
Use this information to set up a payoff table for the decision problem.
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Click here to view the outsourcing decision data.
Complete the payoff table.
(Simplify your answers.)
Demand Outcome | ||||
---|---|---|---|---|
Decision | 800 | 900 | 1,200 | 1,500 |
Manufacture | $nothing | $nothing | $nothing | $nothing |
Outsource | $nothing | $nothing | $nothing | $nothing
|
Manufactured In-House Fixed Cost $49,000 Unit Variable Cost $120 Purchased from Supplier Unit Cost $170
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