Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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You are asked to help your boss deciding who is considering whether to make or buy a part for
a top most demanding product of the company.
Your company can make the component for $40 per unit or buy it for $50 per unit from vendor.
If the Company decides to make the component, it will require 4 hours of machine time to
make each part. The company has 2,000 hours of machine time available per month. Should
the company make or buy the component? How many max parts company can make?
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