Subject category:
Production and Operations Management
Published by:
Darden Business Publishing
Version: 21 February 2014
Revision date: 5-Mar-2014
Length: 11 pages
Data source: Published sources
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Abstract
The global sourcing department at World Kitchen faces a make/buy decision that could result in closing a 90-year-old facility in Pennsylvania. Concerns about labor costs and capital investment both come to the fore owing to ongoing union negotiations and the upcoming need for a major refurbishment of the glass-making furnace. Although many potential suppliers offer lower labor costs, tariffs, transportation, and quality must be factored into the decision.
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Abstract
The global sourcing department at World Kitchen faces a make/buy decision that could result in closing a 90-year-old facility in Pennsylvania. Concerns about labor costs and capital investment both come to the fore owing to ongoing union negotiations and the upcoming need for a major refurbishment of the glass-making furnace. Although many potential suppliers offer lower labor costs, tariffs, transportation, and quality must be factored into the decision.
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