Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
expand_more
expand_more
format_list_bulleted
Question
Chapter 6.9, Problem 27P
Summary Introduction
Interpretation:Discuss the reasons behind outsourcing even by large companies with their own establishments.
Concept Introduction: Make or buy/outsource are strategic decisions to be taken by the companies whether manufacturing and/or logistics. The decision may be for a product or service. The decision is based on many factors which are unique to every company and every situation. A few important ones are cost of investment including space, availability of technology, infrastructure required, availability of reliable suppliers etc.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solutionStudents have asked these similar questions
In the chapter opener, we get a glimpse of how a major corporation can make a significant social contribution by assisting in a disaster relief supply chain. Disasters often occur with little warning; humanitarian aid needs to get to the affected areas very quickly. From the perspective of supply chain design, what capabilities should disaster relief supply chains have?
Where is there risk for supply chain disruptions or stoppages to the flow of materials?
What are the key trends in supply chain management, and how can companies optimize their operations to improve efficiency and reduce costs?
Chapter 6 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 6.2 - Prob. 1PCh. 6.2 - Prob. 2PCh. 6.2 - Prob. 3PCh. 6.2 - Prob. 4PCh. 6.2 - Prob. 5PCh. 6.2 - Prob. 6PCh. 6.2 - Prob. 7PCh. 6.2 - Prob. 8PCh. 6.5 - Prob. 10PCh. 6.5 - Prob. 11P
Ch. 6.5 - Prob. 12PCh. 6.5 - Prob. 13PCh. 6.5 - Prob. 14PCh. 6.5 - Prob. 15PCh. 6.5 - Prob. 16PCh. 6.6 - Prob. 17PCh. 6.6 - Prob. 18PCh. 6.6 - Prob. 19PCh. 6.6 - Prob. 20PCh. 6.6 - Prob. 21PCh. 6.9 - Prob. 22PCh. 6.9 - Prob. 24PCh. 6.9 - Prob. 25PCh. 6.9 - Prob. 26PCh. 6.9 - Prob. 27PCh. 6.9 - Prob. 28PCh. 6.9 - Prob. 29PCh. 6.9 - Prob. 30PCh. 6.9 - Prob. 31PCh. 6.10 - Prob. 34PCh. 6.11 - Prob. 37PCh. 6.11 - Prob. 38PCh. 6.11 - Prob. 39PCh. 6.11 - Prob. 41P
Knowledge Booster
Similar questions
- if a company wants to keep the holding of stocks as close to the start of the logistics chain , what are the benefits and where does the logistics chain start ?arrow_forwardWhich of the following is NOT a form of structural change of the supply chain? Forward and Backward intergration Creating cross functional teams Major process simplification Outsourcing logistics to a third partyarrow_forwardIs it your opinion that the efficiency of reverse logistics operations in a firm may be improved via the cooperation of different departments? Why?arrow_forward
- You are working in the management team at MuchUSA which is a hypermarket. The company has specialized in its logistics operations and works with multiple partners in its supply chain network.You are recently promoted as Deputy Head of Operations. You have been asked to produce a detailed briefing and update the management on adopting World class best practices in operations. You need to advise the management by preparing a brief on supply chain and logistics concepts.Apply the strategic aspects of supply chain management to increase efficiency and productivity in each of these 4 operational areas for MuchUSA:i. Location of distribution centersii. Capacity planningiii. Transportationiv. Inventory managementarrow_forwardWhat steps will a company take to ensure that its supply chains are designed in such a way that materials are available at all times?arrow_forwardPlease as soon as possible.thank you What achievements do you feel that a Supply Chain needs to be robust, competitive, and sustainable?arrow_forward
- Which of the seven principles of SCM is most critical to the success of supply chains in the future?arrow_forwardSupply chain management is the management of the flow of goods and services between businesses as well as locations and includes the movement and storage of materials, inventory, and finished goods from their origin to their destination. It also involves the streamlining of the business’s activities in order to maximize customer value and gain a competitive advantage. Given this definition and explanation, describe what the supply chain of your organization looks like. How does your understanding of, as well as the physical mapping of your supply chain,help you to gain the knowledge necessary to maximize your customer value and gain a competitive advantage within your industry?arrow_forwardYou are a supply chain manager at a UK firm. In 2010, a volcano broke out in Iceland, disrupting air travel across Europe. On the one hand, you are considering switching to local suppliers in the UK. On the other hand, you feel bad about abandoning your Asian suppliers, with whom you have built a pleasant personal and business relationship, and who – in the long run – may be able to delivery produce much cheaper. Yet, your tightly coordinated production cannot afford to miss one supply shipment. How do you proceed?arrow_forward
- Suppose a company has a fixed cost of $100,000 and a variable cost per unit of $10. It sells its product for $14. Calculate its break-even level of output. Calculate how much it must produce to make $100,000, assuming it can sell it all. At an output level of 35,000 units, if it can buy the product wholesale from a distributor at $12 each, should it outsource or produce the product itself?arrow_forwardExamine how skills levels of operators and requested service levels as factors impacting warehouse operations will affect Zero-sum Importers. Note: you are required to provide a paraphrased overview of the concepts before you provide at least one application point for each.arrow_forwardLarge trucks are an important piece of the logistics chain. However, there were 333,000 large truck crashes in 2012, resulting in almost 3,800 fatalities, the majority being drivers or passengers of other vehicles, not the truck driver. One accident in 2014 caused a public uproar when a Walmart truck driver fell asleep at the wheel after being awake for 24 hours and crashed into another car, killing one person and critically injuring others, one being a well-known comedian. The U.S. Department of Transportation’s Federal Motor Carrier Safety Administration enacted tougher hours-of-service rules that went into effect in July 2013. One report claimed that the industry would lose $1 billion in lost productivity as a result of these rules, while another concluded the industry would realize almost $500 million in benefit from reduced driver mortality. The new rules have caused considerable controversy and have caused hardships for drivers. As one driver put it, “If the wheels aren’t…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.
Practical Management Science
Operations Management
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:Cengage,
Operations Management
Operations Management
ISBN:9781259667473
Author:William J Stevenson
Publisher:McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi...
Operations Management
ISBN:9781259666100
Author:F. Robert Jacobs, Richard B Chase
Publisher:McGraw-Hill Education
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Production and Operations Analysis, Seventh Editi...
Operations Management
ISBN:9781478623069
Author:Steven Nahmias, Tava Lennon Olsen
Publisher:Waveland Press, Inc.