Today, the foundry provides virtually all of the required pump housings. Bob Dorfs cousin, Terry, is the supply manager for Muenster Pump. Terry is an aggressive and conscientious professional. But he claimed that new developments in casting pouring allowed his firm to offer extremely attractive prices.
The Muenster Pump Company has manufactured high quality agricultural pumps for over 40 years. Engineering Samuel Dorf V.
Present a clear analysis of the relevant costs of make or buy to assist in the decision. The rep was aware that Muenster Pump made its own cast pump housings. Bob and his family, along with all key personnel, live in or near the city of Muenster. Terry met her Uncle Ned, discussed her findings with him, and asked how much it cost Muenster to produce the cast or pump housings internally in its own foundry.
But after two years of life in the big city, Terry returned to Muenster. Terry contacted two other foundries and obtained quotations for the L housing.
Since its founding, the firm has always been as self-sufficient as possible. Furthermore, we can respond to requirements much quicker than those city boys. We will create a cross-functional team upper management, production, finance, operations, etc.
The Muenster Pump Company can buy the L cast pump housings from Union Foundry, which is 60 percent of its housing requirements, and keep its foundry to make the other 40 percent. Compare those costs to the bid price. The foundry provides virtually all of the required pump housings.
Materials costs have come down from 60 percent of the cost of sales to 50 percent in the two years since she assumed responsibility for purchasing. Marginal costs are those costs that would go away if they are outsourced. Bob and his family, along with key personnel, live in or near the city.
To Make or To Buy position of purchasing manager by consolidating the buying functions previously performed by himself and other members of the firm. Whether to continue making in-house or to buy outside the cast pump housings for the agricultural pumps.
If our product is higher quality, then there is not an issue and we can look into incorporating some of the new techniques with our old ones, to see if we can produce a higher quality cheaper product.
Delivery was promised in days after receipt of the first order.Case. Making or Outsourcing Pump Housings. The Muenster Pump Company has manufactured high-quality agricultural pumps for over 40 years.
The firm’s only plant is located in the small midwestern city of Muenster. Free Essay: Muenster Pump Case Analysis I. Major Facts Related to the Muenster Pump Case A.
The company has cast its own pump housings for over 40 years. A. Muenster Pump Company. Case #4. Submitted in partial fulfillment of. MKTG By Cody Chaplain to Dr. Thomas Lachowicz. 11/13/ Statement of the problem – The Muenster Pump Company must determine whether to continue making the L casting housing, or buy the housing from Union Foundry.
Background. Major Problem Muenster Pump is currently making the L pump housing at almost double the cost of their competitors. Muenster Pump Case Study1 where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.
%(10). Muenster Pump Case Analysis Muenster Pump Case Study Analysis By: Dewayne L. Knowles 1. MAJOR FACTS: a. Muenster Pump Company foundry pumps virtually all the required pump housings in Midwestern city of Meunster.
(1) Muenster produces a quality housing that is not equaled in the industry. (2) rapid response to requirements much.
Examples of Student Developed Case Analyses A STUDENT-DEVELOPED ANALYSIS FOR THE MUENSTER PUMP COMPANY I. Major Facts 1.Download