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What is an opportunity cost, and why should managers consider it when making insourcing-versus -outsourcing decisions? When a resource is constrained, how should mangers choose

  1. What is an opportunity cost, and why should managers consider it when making insourcing-versus -outsourcing decisions?
  2. When a resource is constrained, how should mangers choose which of multiple products to produce and sell?
  3. What steps can mangers take to manage bottlenecks?
  4. Is book value of existing equipment relevant in equipment-replacement decisioins?
  5. How can conflicts arise between the decision model a manager uses and the performance-evaluation model top management uses to ealuate that mananger?

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