Big Box Assignment

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Scenario Assignment 02 Abstract This paper is about the opportunity cost scenario. There is a business development specialist name Kendra Sherman. She has an end of state goal for a secure order from Clear Hear to produce 100,000 cell phone units. In the scenario Kendra is faced with many options and must make an important decision to which of one of the four alternative solutions should be considered, in order to complete her order within 90 days. There has to be a decision made about her opportunity cost. Scenario Assignment 03 Indentify Alternative solutions to meet the end-state goals. The alternative end of states goals are for Kendra to one subcontract the entire order to Original Equipment Manufacturer (OEM). Two produce 70,000 cell phone units of her own and have OEM to produce the other 30,000. Third, she could produce all the cell phone units herself without any help. Lastly, Kendra can declined the order from Big Box and not do nothing at all. Analyze and evaluate the alternatives you indentified. In the first solution if Kendra decides to go with subcontracting her entire order to OEM. She will not have to worry about making any of the 100,000 cell phone units. However she will lose some profit in the process. Because OEM price per unit will be $14, instead of $15. If Kendra chooses to produce 70,000 units on her own and let OEM produce the other 30,000, she will gain but lose profit at the same time. Since she can produce the larger amount she can sell them for $15 and the smaller portion would have to be sold for $14. With the third solution Kendra can produce all of the cell phone units herself and take the chance of not having them all completed, which will be a much bigger lost for her. Finally Kendra can decide to decline the deal, losing all profits. Perform risk analysis to identify potential risks and negative consequences of

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