7) Which of the following most accurately describes your
company’s production/assembly operation?
a. Most all camera components are sourced from outside suppliers
having plants or distribution centers, near the company’s assembly
facility; the company uses workstations staffed by 4-person teams
to assemble cameras. In the most recent year, the current
productivity of the assembly teams was 2,500 cameras per quarter or
10,000 per year. Some of the cameras are outsourced from contract
assemblers that are paid a $25 fee for each camera assembled.
b. The company assembles entry-level cameras in-house using
components that are made by a subsidiary, multi- featured cameras
are outsourced from contract suppliers and are made to company
c. About 75% of the cameras are assembled in-house by 4-person
teams using company-produced components. In-house assembly averages
$3.50 per camera. About 25% of the cameras are outsourced from
nearby camera assembly companies that are paid $3.75 per camera
assembled. Most of the cameras outsourcing occurs in Quarter 3 of
each year when retailer demand is at its peak.
d. The company makes most all of its camera components in-house
and assembles cameras on a 100-person assembly line at the rate of
2,000 per hour. Assembly cost is $2 per camera.
e. About 80% of the cameras are assembled in-house using
components sourced from outside suppliers: company assembly occurs
evenly across all four quarters at the rate of 20% per quarter. The
remaining 20% are outsourced from nearby contract assemblers during
the peak holiday season fourth quarter when camera buying is at its
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