Question
Determine the exact shipping costs for cards outsourced to China (replacing the assumption of one-half cent per card). Estimate the incremental inventory holding costs for
Determine the exact shipping costs for cards outsourced to China (replacing the assumption of one-half cent per card).
Estimate the incremental inventory holding costs for the volumes you recommend outsourcing (assumptions: 10% inventory cost, 12 weeks of additional lead time)
Evaluate the likely supply chain risks associated with outsourcing to China: quality/reliability, lead times, predictability, supplier relationships/management, etc.
Evaluate the business strategy implications of outsourcing cards to China: importance to the company of the product and process, intellectual property concerns, image/reputation, etc.
What is your overall sourcing recommendation, taking into account: economics, supply chain risks and strategic implications
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Sourcing Recommendation for Cards China vs Domestic Heres a breakdown to help you decide whether to outsource card production to China 1 Shipping Costs Current Assumption 05 cents per card This might ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started