The Outsourcing Proposal
Read the Case at the end of CH 14- 14-1 “The Outsourcing Proposal”
Critical analyze and present your perspective on:
Your original post must be detailed and analytical of what you have understood from the case
Answer the following questions:
What are the concerns that Randy is facing with the issues to improve throughput?
What are the advantages and disadvantages of outsourcing? What are the potential risks?
How does the distribution network of suppliers hamper the decisions for Randy?
Are there any considerations that are not in the case that Randy should make that can help him?
What is your evaluation of the cost analysis provided in Exhibit 1?
What additional costs should be considered when evaluating the opportunity to outsource the weldments?
Base your answers on practical aspects, and not in an ideal world