Purchased items that are used in manufactured products or services are?
a. Raw materials
b. MRO supplies
c. Work-in-process
d. Finished goods
a. Raw materials
You might also like to view...
During a strike, the employer loses production unless it can hire replacement workers, and even then, productivity may be reduced.
Answer the following statement true (T) or false (F)
Customers expect responsive action in a timely fashion
Indicate whether the statement is true or false
All interests in property that can be conveyed carry the right to immediate possession
Indicate whether the statement is true or false
A company asked one of their analysis team to analyze and create models that help decide whether they should manufacture a particular product or outsource its production. The different components are given below
Fixed Cost, FC = $25,000
Material Cost per Unit, MC = $2.15
Labor Cost per Unit, LC = $2.00 Outsourcing Cost per Unit, O = $4.50
?
- Build an influence diagram that illustrates how to calculate the difference in cost of manufacturing and outsourcing.
- Using mathematical notation, construct a mathematical model for calculating the difference in cost of manufacturing and outsourcing.
- Implement your model from part (b) in an Excel spreadsheet model using the principles of good spreadsheet design.
- Using the spreadsheet model, what will be the resulting savings due to outsourcing if the company wants to make 30,000 units of a particular product?