Question

White & Checker is releasing a new power drill that requires the manufacturing of a new part. They are considering whether they should manufacture the part in-house or outsource it from a supplier. The demand forecast is 1,355 units. They calculate the break-even quantity as 1,750 parts. What decision should White & Checker make?

a. The product should not be released, as the demand is not high enough.

b. A percentage of the product should be manufactured in-house, and the rest should be outsourced.

c. The part should be outsourced.

d. The part should be manufactured in-house.

Answer

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