A Company Is Deciding If It Should Design a Product

question 94

Essay

A company is deciding if it should design a product in-house or outsource the design. If outsourced, the cost for a low bidder would be $40,000, and the cost for an expensive bidder would be $100,000. To design in-house would require overtime for an already stretched design team with total costs of $70,000. If all three designs (in-house, low bid, high bid) are equal in quality and the likelihood of finding a low bidder is 60% (meaning that 40% of the time the firm will have to hire the expensive bidder), should the company outsource design or do it in-house?

---

Definitions:

Profession

A vocation requiring specialized knowledge and often long and intensive academic preparation, characterized by a commitment to service and a set of ethical standards.

Presidency

The office or position of the president, often referring to the executive head of a country or organization.

Body Image

The perception and attitude an individual holds towards their own body's appearance and functionality.

Urban

Pertaining to a city or town, often characterized by higher population density and vast human features in comparison to areas outside of cities.