Case Study 1
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 = $96 per unit.
Annual Demand = 500,000 units
Price quoted by the Asian company = $90 per unit plus a shipping cost of $20,000 per shipment.
-In addition to cost consideration, what other factors would weigh in decision making?

Question

Quizplus · Accepted Answer

The Answer is Reputation of overseas vendor, quality of parts, political climate of the country in which the vendor is from, labor regulations.

Case Study 1 Ross Manufacturing in Atlanta Is Considering Outsourcing a Component from a Component