Question Details

[solution]: Merrimac mannufacturing Company has always purchased a certain


Answer download
More Details:

  • Merrimac mannufacturing Company has always purchased a certain component part from asupplier on the East Coast for $50 per part. The supplier is reliable and has maintained thesame price structure for years. Recently, improvements in operations and reduced productdemand have cleared up some capacity in Merrimac?s own plant for producing componentparts. The particular part in question could be produced at $40 per part, with an annualfixed investment of $25,000. Currently, Merrimac needs 300 of these parts per year.
  • a. Should Merrimac make or buy the component part?b. As another alternative, a new supplier located nearby is offering volume discounts fornew customers of $50 per part for the first 100 parts ordered and $45 per part for eachadditional unit ordered. Should Merrimac make the component in-house, buy it from thenew supplier, or stick with the old supplier?c. Would your decision change if Merrimac?s annual demand increased to 2000 parts?increased to 5000 parts?d. Develop a set of rules that Merrimac can use to decide when to make this component,when to buy it from the old supplier, or when to buy it from the  new supplier.(Hint: Dertermine the range when merrimac will: A. Buy from old supplier, B. Buy from the new supplier , C. Produce the component part ,D. Indiffernt between A and B, E. Indifferent from B and C.).

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 18, 2020

PRICE: $18.50

Solution~00031148133938.zip (25.37 KB)

Buy this answer for only: $18.50

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free copy (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 18, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN YOUR SET DEADLINE.

Order Now