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Question
A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $40,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of $70,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder), should the company outsource design or do it in-house?
Answer
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Related questions
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Q:
The tracking signal is the:
A) standard error of the estimate.
B) absolute deviation of the last period's forecast.
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D) ratio of cumulative error / MAD.
E) MAPE.
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A) immediate rivals
B) potential entrants
C) customers
D) suppliers
E) all of the above
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Provide an example of an organization that achieves competitive advantage through experience differentiation. Explain.
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Service organizations can immerse the consumer in the service, or have the consumer become a participant in the service, as they practice ________.
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Consumer's risk is the probability of:
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B) rejecting a good lot.
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E) none of the above
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The probability of rejecting a good lot is known as consumer's risk.
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Because most services cannot be inventoried, there is little place for JIT to help service organizations achieve competitive advantage.
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Lean operations are known for their:
A) employee development.
B) supplier education.
C) supplier partnerships.
D) challenging jobs.
E) All of the above are attributes of lean operations.
Q:
Wheeled Coach uses ________ as the catalyst for low inventory, high quality, tight schedules, and accurate records.
Q:
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
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Q:
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B) use tends to be predictable, and pricing tends to be variable.
C) use tends to be uncertain, and pricing tends to be fixed.
D) use tends to be uncertain, and pricing tends to be variable.
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Q:
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Q:
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Q:
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Q:
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A) higher capital cost
B) higher wage rates
C) smaller labor pool
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E) All of the above are limitations of job expansion.
Q:
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B) job identity
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Q:
Profit-sharing is a motivation and incentive system where executives receive stock options.
Q:
The primary purpose of the mean absolute deviation (MAD) in forecasting is to:
A) estimate the trend line.
B) eliminate forecast errors.
C) measure forecast accuracy.
D) seasonally adjust the forecast.
E) remove random variations.
Q:
Which of the following is NOT a key benefit of MRP?
A) increased quality
B) better response to customer orders
C) faster response to market changes
D) improved utilization of facilities and labor
E) reduced inventory levels
Q:
Demand for a given item is said to be dependent if:
A) it originates from the external customer.
B) there is a deep bill of material.
C) the finished products are mostly services (rather than goods).
D) there is a clearly identifiable parent.
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Q:
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Q:
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Q:
Weight Day
Package 1
Package 2
Package 3
Package 4 Monday
23
22
23
24 Tuesday
23
21
19
21 Wednesday
20
19
20
21 Thursday
18
19
20
19 Friday
18
20
22
20 (a) If he sets an upper control limit of 21 and a lower control limit of 19 around the target value of twenty ounces, the control chart is based on what value of z?
(b) With the UCL and LCL of part a, what do you conclude about this processis it in control?
Answer:
Q:
What is the difference between natural and assignable causes of variation?
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What are the three possible results (or findings) from the use of control charts?
Q:
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A) 18.18% of the throughput time
B) 100% of the throughput time
C) 550% of the throughput time
D) 50% of the throughput time
E) 1.82% of the throughput time