Essay Available:
Pages:
1 page/β275 words
Sources:
1 Source
Style:
APA
Subject:
Management
Type:
Case Study
Language:
English (U.S.)
Document:
MS Word
Date:
Total cost:
$ 4.86
Topic:
The Global Sourcing Wire Harness Decision
Case Study Instructions:
Calculate the total cost per unit of purchasing from Original Wire.
Calculate the total cost per unit of purchasing from Happy Lucky Assemblies
Case Study Sample Content Preview:
The Global Sourcing Wire Harness Decision
Name
Institution
Date
1] Calculate the total cost per unit of purchasing from Original Wire.
Type of costsTotal CostsExplanationCost per unit Unit Price$30.00 Packaging Costs$0.75 Tooling$6,000 $6,000/60,000$0.10 Freight Cost$5.20 per hundred pounds$0.52 Total Cost Per Unit $31.37
2] Calculate the total cost per unit of purchasing from Happy Lucky Assemblies
Type of costsTotal CostsExplanationCost per unit Unit Price$19.50 Shipping lead time8 WeeksTooling$3,000 $3,000/1880,000 unit$0.02 Packing costs$2.00 per container$2.00 Inland Transportation$ 200 per container200*3/5000$0.12 Freight forwarders fee$100 per shipment100/5000$0.02 Cost of ocean transport$4000 per container4,000*3/5,000$2.40 Marine insurance$.50 per of 100 shipment.5% of unit cost$0.10 U.S. port handling charges$ 1200 per container1200*3/5000$0.72 Customs duty% of unit cost 0.05*unit cost ($19.50)$0.98 Customs broker fees$ 300 per shipment300/500$0.06 Transportation from Seattle to Detroit$18.60 per hundred pounds$18.6/100$0.19 Warehousing cost$1.00 per cubic foot per month$1.00 Capital Inventory costs/annual Capital Inventory costs 4 weeks$1*(0.15/52)*4$0.01 Cost of hedging currency$ 400 per shipment400*3/500$0.24 Additional administrative time4 hours per shipment, $ 25 per hour(4*25)/50000$0.02 Travel visits to China $20,000 annual visits$20,000/60,000$0.33 Total Cost Per Unit$27.70
3] Based on the total cost per unit, which supplier should Sheila recommend?
On the basis of costs, Happy Lucky Assemblie...
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