Internal production costs were obtained from manufacturing

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Make and buy information is shown in Figure C12.1. Internal production costs were obtained from manufacturing and cost accounting; information on the cost to buy was gathered from journals, historical pricing, supplier information, and engineering estimates. • OEM demand is estimated at 250,000 units over the next year (1,000 units/day, 250 working days/year). • The resin usage is 454 grams (1 pound). Actual product weight is 432 grams with a spru weight of 22 grams. • Variables include cycle time, labor costs, overhead costs, material costs, transportation costs, and profit margins. • Difference in quality levels of in-house and procured parts is negligible.

Reference no: EM131041792

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