Training courses on number of operations management topics

Assignment Help Operation Management

Reference no: EM132199841

OpMan Inc. offers executive training courses on a number of operations management topics. It is presently bidding on a three-year contract for a training course on supply chain management. Training will be provided bimonthly (i.e., twice each month) for the duration of the contract. Currently, OpMan does not have internal expertise in this area. In order to provide the training, should it win the contract, OpMan is considering (1) hiring a full-time person to do the training or (2) contracting out to an independent consultant. A full-time person will cost OpMan $80,000 for the first year, with a 10% annual adjustment for inflation and salary increases. An outside consultant, on the other hand, will charge $5,000 for a one-time preparation fee and $2,000 each time the training is given.

a. Based solely on cost argument, which option should OpMan choose? Please show your work.

b. What non-cost factors should be considered? Identify at least two such factors.

Reference no: EM132199841

Questions Cloud

What is the goal of implementing teacher incentive pay : What is the goal of implementing teacher incentive pay? Explain why the design of typical teacher pay schedules might make it desirable to provide merit pay.

Important predictors of successful wellness programs : What are some factors that you consider to be important predictors of successful wellness programs?

What is the competitive strategy for your company : What is the competitive strategy for your company? Using Porter's Generic Strategy, which approach will you use and why?

What is total inventory cost for the inventory plan : Southwest Airlines was one of early “low cost” airlines in industry. what is total inventory cost (i.e.setup cost + holding cost) for the inventory plan

Training courses on number of operations management topics : OpMan Inc. offers executive training courses on a number of operations management topics. Based solely on cost argument, which option should OpMan choose?

Employee relations techniques prevent need for unionization : Describe how effective employee relations techniques prevent the need for unionization.

Determine contribution margin per unit for each type of vase : BU330 Determine the contribution margin per unit for each type of vase. Determine the contribution margin per machine hour for each type of vase.

Determining the level of the next dividend : Outline the practical issues that a financial manager should take into account when determining the level of the next dividend that will be paid to shareholders

Operations strategy : Dell has recently switched from allowing customers a great deal of flexibility in designing their own computers to having a few standard models with few options

User Account

All Pages