Question henri of henris french cuisine hfc a chain of 12, Ask an Expert

Management Studies

Question: Henri of Henri's French Cuisine (HFC), a chain of 12 restaurants, is trying to decide if it makes sense to outsource the purchasing function. Currently, Henri employs two buyers at an annual fixed cost of $85,000. Henri estimates that the variable cost of each purchase order placed is $15. Value-Buy (VB), a group of purchasing specialists, will perform the purchasing function for a fixed annual fee of $100,000 plus $5 for each purchase order placed. Last year, HFC placed 1450 purchase order.

What was the cost last year to HFC when doing the purchasing in-house?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92746819

Have any Question?Write your Review or question?

Related Questions in Operation Management

Case one green machine incgreen machine inc a company

Case One: Green Machine, Inc. Green Machine, Inc., a company devoted to producing eco-friendly household products, is a wholly owned subsidiary of Colossal Corporation. Green Machine's most famous and best-selling produc ...

1 in what mature industry did the entrepreneurial firm

1. In what mature industry did the entrepreneurial firm Method manage to change the rules and create success via sustainable strategies and design? Home furnishings Garden products Consumer packaged goods Transportation ...

Plan production for a four-month period february through

Plan production for a four-month period: February through May. For February and March, you should produce to exact demand forecast. For April and May, you should use overtime and inventory with a stable workforce; stable ...

1 in thinking about an organization with which you are

1. In thinking about an organization with which you are familiar, can you give examples of the Human Relations or Human Resources approaches being used? 2. What entities and/or relationships most likely need to be includ ...

Aticle - a stakeholder theory of the modern corporation

Article - A Stakeholder Theory of the Modern Corporation : Kantian Capitilism By William M Evan and R. Edward Freeman. Read the article and answer these two questions: 1. What are the responsibilities of the corporate Bo ...

A state two contrasts between pure project teams and matrix

(a). State TWO contrasts between Pure Project Teams and Matrix Project Teams. Give an example of each (b). The following data relates to the activities required for a project. Since exact duration for each activity is no ...

1 provide an example of a non-contractual promise that is

1. Provide an example of a non-contractual promise that is "unenforceable," and explain "why" it is unenforceable (not from the textbook make a fictional case). 2. Explain in detail what is meant by: "unenforceable contr ...

1 compare the service capability of motor shipments to that

1. Compare the service capability of motor shipments to that of rail shipments? Provide your logic as to when you would choose one transportation method over another. 2. Compare the sick day benefits between Target and W ...

1 developing effective health care cost control methods has

1. Developing effective health care cost control methods has become a major issue for HR professionals. As HR director, what 4-5 methods of cost control would you recommend an employer consider? 2. A Strategic Plan is a ...

1 long run growth rate changes in demand macro

1. Long run growth rate, changes in demand, macro environmental factors, and industry profitability are all examples of: A. competitive strength of a business unit or product in the GE McKinsey framework B. VRIO resource ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert