Single: Which Problem

In the following scenario what kind of single-period problem should you be trying to solve?

You have been negotiating with a variety of printers for some runs of large color posters. Each bid gives the set-up costs for the posters and the cost per unit for 500, 1000, and 10,000 posters — as you requested. You finally decided on the how many posters you want but now need to choose a printer.

Question options:

  • Break Even
  • Make vs Buy
  • Optimal Pace

Answer: Make vs Buy, because you are looking for the cheapest solution to make these posters. You would compare the wage of your employee and the cost for running/buying the equipment to make the posters on the different printers or if it is cheaper to out source the job to a place that specializes in printing.

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