What are the pros and cons of outsourcing this bracket to Mayes Steel Fabricator, or keeping this product (i.e. the bracket) internal with B&L Manufacturing? Also, as part of your analysis, you have four calculations to complete:
Annual manufacturing cost based on an “Annual Demand” of 40 trailers.
Total purchasing-related costs; calculate the EOQ.
Determine the “Total Cost” when placing orders of Q = 75 sets of the five parts.
Determine the “Total Cost” when placing orders of Q = 80 sets of the five parts.