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Case Study of Special-Order Decisions Regarding to Manufacture the Movable Loess-Rooms for Establishing an Eco-Village

  • Journal of Regional Studies and Development
  • Abbr : JRSD
  • 2019, 28(1), pp.31-57
  • DOI : 10.22739/ipaid.2019.28.1.31
  • Publisher : Institute for Poverty Alleviation and International Development: IPAID
  • Research Area : Social Science > Area Studies > Regional Studies in general > Comparative / Statistical Regional Studies
  • Received : February 19, 2019
  • Accepted : April 17, 2019
  • Published : April 30, 2019

Jong Won Choi 1,  Minseo Oh 1,  Jungin Lee 1,  Dajeong Han 1,  Eunsong Han 1,  Ju Hyoung Park 1

1연세대학교

Accredited

ABSTRACT

This study investigates case of special-order decisions regarding to manufacture the movable Loess-Rooms for establishing an eco-village. The company was finally selected as a construction company for the establishment of eco-villages being promoted in the country and asked to provide 900 movable Loess-Rooms. Its factory, however, has only 300 production capacity per year. In this situation, this company has to determine whether to outsource the remaining 600 orders or to establish a new plant for insourcing. If this company decides to make an insourcing decision, the new plant may become an idle facility after this special order is completed. Therefore, in this study, we discuss the use of idle facilities additionally. This study suggests a case study on whether it would be advantageous to outsource some manufacturing lines of the movable Loess-Rooms, or to establish a factory, manufacture that products and utilize idle facilities after special order. The result of this study is expected to be useful for professors and learner of management accounting classes.

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