Scenario 2.6 You Currently Purchase a Part Used in Your Production Process

question 141

Multiple Choice

Scenario 2.6
You currently purchase a part used in your production process from an outside supplier, and have decided to begin making this part in-house. You have two equipment options for moving production in-house: special-purpose equipment and general-purpose equipment. Cost information for these two options is as follows:

-Use Scenario 2.6 to answer this question. For what range of output is the Special-Purpose Equipment the low-cost option?

• A) 30,000 or more units per year
• B) 0 - 30,000 units per year
• C) 0 - 40,000 units per year
• D) 40,000 or more units per year

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Definitions:

Lewin's Basic Change Model

A model describing organizational change through three steps: unfreezing, changing, and refreezing.

Refreezing

The stage in the Lewin's change model where new behaviors or changes are consolidated and integrated into normal operations to ensure they are sustained.

Genetically Modified Ingredients

Ingredients in food that have been modified through genetic engineering to enhance certain traits such as increased resistance to herbicides or improved nutritional content.

Social and Political Pressures

External forces from society and governmental entities that influence an organization's or individual's decisions and actions.