A high-tech consumer product manufacturer in Southeast Wisconsin (Milwaukee) is investigating outsourcing possibilities for an important electronic component used in their final product.The company is considering replacing the current supplier (located in Janesville, about 80 miles southwest of Milwaukee). They are interested in a supplier strategy of discontinuing the current supplier and using a supplier based in Shenzhen (20 miles north of Hong Kong) in Southern China.

discuss the following:

1. Possible benefits of the decision to outsource to the supplier in Shenzhen
2. Risks associated with the decision
3. Effects on components of total cost of ownership