Which of the following most accurately describes your company’s production/assembly operation?
a. Most all camera components are sourced from outside suppliers having plants or distribution centers, near the company’s assembly facility; the company uses workstations staffed by 4-person teams to assemble cameras. In the most recent year, the current productivity of the assembly teams was 2,500 cameras per quarter or 10,000 per year. Some of the cameras are outsourced from contract assemblers that are paid a $25 fee for each camera assembled.
b. The company assembles entry-level cameras in-house using components that are made by a subsidiary, multi- featured cameras are outsourced from contract suppliers and are made to company specifications.
c. About 75% of the cameras are assembled in-house by 4-person teams using company-produced components. In-house assembly averages $3.50 per camera. About 25% of the cameras are outsourced from nearby camera assembly companies that are paid $3.75 per camera assembled. Most of the cameras outsourcing occurs in Quarter 3 of each year when retailer demand is at its peak.
d. The company makes most all of its camera components in-house and assembles cameras on a 100-person assembly line at the rate of 2,000 per hour. Assembly cost is $2 per camera.
e. About 80% of the cameras are assembled in-house using components sourced from outside suppliers: company assembly occurs evenly across all four quarters at the rate of 20% per quarter. The remaining 20% are outsourced from nearby contract assemblers during the peak holiday season fourth quarter when camera buying is at its peak.