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Supplier Selection Approaches Bhutta And Huq S 2002 Article Supplier Selection P 1

Supplier Selection Approaches Bhutta and Huq’s 2002 article, “Supplier Selection Problem: A Comparison of the Total Cost of Ownership and Analytic Hierarchy Process Approaches,” in this unit’s study a
Supplier Selection Approaches
Bhutta and Huq’s 2002 article, “Supplier Selection Problem: A Comparison of the Total Cost of Ownership and Analytic Hierarchy Process Approaches,” in this unit’s study advances two approaches to supplier selection: TCO and AHP. Find and consider two examples of supplier selection in current business periodicals. For each example, what are the relative advantages of these two methods? Which approach would be most appropriate? 
 
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  3. P2. A supplier could provide a component part for $7 per unit. Your firm estimates $15,000 to prepare the contract with the supplier. To make the part in house, your firm must invest $105, 000 in capital and it will cost $5 to make the part. (a) (2 pts) What is the break even quantity? (b) (2 pts) If the annual requirement for the component part is 40,000 units, which option should be selected? Explain.
  4. From below, which one is NOT a factor that would make outsourcing more attractive than producing in-house? Multiple Choice increased total production capacity disclosure of proprietary information to supplier potential to lower fixed costs supplier cost may be lower supplier may have greater expertise to do the outsourced work