Class 8 In - Outsource

Class 8 In - Outsource - In-sourcing OutsourcingYou are the...

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Unformatted text preview: In-sourcing / OutsourcingYou are the sourcing manager for an electronics firm. You find yourself responsible for an in-sourcing / outsourcing analysis for a key component used in one of your firm’s most popular products – a voice synthesizer used in personal computers. The component in question, the DX-1A, is an electronic assembly that is critical to end-product performance. Your firm has been manufacturing the DX-1A since the component assembly’s introduction two years ago. Management has determined there is the possibility of converting the manufacturing area and equipment used on the DX-1A to manufacture a new component, the FX-2A, which a new line of products scheduled for introduction in a year will use.In the course of the outsourcing analysis, you have gathered a variety of cost information. You have negotiated the tentative purchase price of $5.875 per unit FOB shipping point....
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