Case Study 1 Ross Manufacturing in Atlanta Is Considering Outsourcing a Component from a Component

Case Study 1
Ross Manufacturing in Atlanta is considering outsourcing a component from an offshore company. The company has collected the following data to make an economic decision.
Cost to make it in-house = $96 per unit.
Annual Demand = 500,000 units
Price quoted by the Asian company = $90 per unit plus a shipping cost of $20,000 per shipment.
-Determine the number of shipments per year that the company can require the supplier to make in order to justify outsourcing.

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