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dc.contributor.advisorMcDonald, Thomas N.
dc.contributor.advisorGracia, Marco Lara
dc.contributor.authorBoulangger-Gimenez, Dalia
dc.date.accessioned2019-12-09T18:13:45Z
dc.date.available2019-12-09T18:13:45Z
dc.date.issued2017
dc.identifier.urihttp://hdl.handle.net/20.500.12419/371
dc.descriptionThesis available in Rice Library University Archives and Special Collection.
dc.description.abstractThe McAdam Company has recently moved its headquarters to Toronto, Ontario, and is predicting a major increase in demand of its unique handbags. Sarah Shell, business owner, has realized she can no longer produce the handbags herself and she is exploring whether to outsource production with either a domestic or an international manufacturer. Shell needs to take production costs, minimum order requirements, and volume designs into consideration in order to make the best profitable decision for her business. After analyzing the possibilities of outsourcing, Shell determines that using an international manufacturer will improve the profitability of the company. The cost of production is $80 per handbag if produced by an international manufacturer vs. $120 per handbag if produced by a domestic manufacturer. However, residual inventory levels at the end of the season will likely be higher if an international manufacturer is selected and this excess inventory may end up being sold at a discounted price and possibly a loss. Residual inventory levels at the end of the season will likely be lower by using a domestic manufacturer, and this alternative provides the convenience of having the production onsite and easier to monitor by Shell. Finally, a local manufacturer will also save McAdam shipping costs.
dc.title442 McAdam
html.description.abstractThe McAdam Company has recently moved its headquarters to Toronto, Ontario, and is predicting a major increase in demand of its unique handbags. Sarah Shell, business owner, has realized she can no longer produce the handbags herself and she is exploring whether to outsource production with either a domestic or an international manufacturer. Shell needs to take production costs, minimum order requirements, and volume designs into consideration in order to make the best profitable decision for her business. After analyzing the possibilities of outsourcing, Shell determines that using an international manufacturer will improve the profitability of the company. The cost of production is $80 per handbag if produced by an international manufacturer vs. $120 per handbag if produced by a domestic manufacturer. However, residual inventory levels at the end of the season will likely be higher if an international manufacturer is selected and this excess inventory may end up being sold at a discounted price and possibly a loss. Residual inventory levels at the end of the season will likely be lower by using a domestic manufacturer, and this alternative provides the convenience of having the production onsite and easier to monitor by Shell. Finally, a local manufacturer will also save McAdam shipping costs.
dc.contributor.degreeMaster of Science in Industrial Managemeht
dc.typeThesis (M.S.I.M.)--University of Southern Indiana, 2017


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