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Fuyao Glass case - Write a comprehensive management report that can be of help to Wen Li decide whether to manufacture the new order that
Fuyao Glass case - Write a comprehensive management report that can be of help to Wen Li decide whether to manufacture the new order that the company just won. Your analysis should include a calculation of what the cost of relevant item could potentially come down in the future at both Tianjin and Ohio. In order to cover both quantitative and qualitative (often strategic) consider answers to the following questions: (1) Look at the bill of materials costs in Exhibit 16. Why are the percentages for each category so different between Tianjin and Ohio factories? (2) In deciding which plant should produce the order, what factors and assumptions are most important? (3) Why might it make sense to ship automotive glass long distances but not float glass sheets? (4) If you were the manager of Fuyao's Ohio operations and you wanted to become the source for the Canadian factory, what would you do? If you were the Tianjin factory manager? (5) Are any factors relevant to future costs, not under the control of Fuyao managers
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