ACS Inc. will be producing and marketing a new line of medical devices products. Most products use a

Do you require help with your paper? Use our custom writing service to achieve better grades and meet your deadlines. Trust our team of writing experts with your work today, and enjoy peace of mind.


Order a Similar Paper Order a Different Paper

ACS Inc. will be producing and marketing a new line of medical devices products. Most products use a key ingredient (Ingredient X). At this time, ACS doesn’t know if it’s more convenient to make Ingredient X in-house or buying it from a supplier. The available information is the following: producing Ingredient X internally would require an investment (fixed cost) of $1.5 million and a variable cost of $2,000/pound. A supplier next to ACS could provide the product for $2,800/pound. The auditing, compliance, and other process to qualify the supplier has a onetime total-cost of $15,000. From information provided by marketing, manufacturing estimates that they will need between 1,750-1,950 pounds to be able to produce all the demand.a. Using a spreadsheet model, display, analyze, and explain in detail, ACS two options, and which should be chosen?b. Explain if ACS should consider another supplier with a cost structure as follow: variable cost $2,400/pound, onetime certification total-cost of $25,000, and maximum capacity to produce 1,800 pounds.

Writerbay.net

Our writing experts are ready and waiting to assist with any writing project you may have. From simple essays, research papers, lab reports, and dissertations, to online classes, you can be sure we have a service that perfectly matches your needs.


Order a Similar Paper Order a Different Paper