I need some help with this guy right here. It deals with total cost of ownership.

Homework 2: Total Cost of Ownership Name: ____________________________ Points: ___/10 Emma, a buyer at William A Smith Engineering, a Mississippi-based purveyor of transits for surveyors, was doing some number crunching. William A Smith Engineering was reevaluating its suppliers for a key component of the transit, the stand. After some extensive evaluation, Emma had narrowed it down to two suppliers and she was comparing them. Jackson Castings, Inc. was a regional company and Shanghai Metals was based in Guangdong Province, China. Given the following information that Emma compiled, use total cost analysis to determine which supplier is more cost-effective for William A Smith Engineering. Late delivery of the stand results in either a lost sale (thus lost profit) or a customer backorder (each time there is a backorder, it costs $635). Assume for the cost comparison that the company orders 12 times per year, the order quantity is 7,917 units, and that the annual requirement (forecast) is 95,000 units. Each time that she orders from a domestic supplier, Emma estimates that it costs the company $ 862 and each time she orders from international suppliers, it costs about $1,649. For purposes of calculating quality problems and declaring the value for customs and insurance, Emma uses the expected invoice amount (purchase cost + packing/packaging) as a base. Emma also knows that additional factory inspection trips will need to be made to the China facility to support the company's environmental, social, and quality goals. What should Emma do? Taking in consideration procurement rules of thumb regarding international sourcing and based on the analysis below, should she source globally or domestically? Enter Global or Domestic. Important! Round each entry to the nearest whole number. Enter as ###,###. Enter negative numbers as -###,###. Product weight Cost of working capital Profit margin Price of finished transit Percent of late deliveries that result in backorders Percent of late deliveries that result in lost sales Quoted unit price Packaging cost (+ packing for international shipping) Tooling cost Invoice Terms Domestic delivery distance (in miles) Supplier quality rating (% problems) Supplier delivery rating (% problems) Number of forty-foot equivalents (FEU) per order China inland freight and freight forwarding (per FEU) 5 10% 11% $ 560 41% 59% Jackson Castings, Inc. $ 41.00 $ 1.64 $ 10,000 2/10, net 30 122 2.00 % 1.00 % pounds per year annual per unit of late deliveries of late deliveries Shanghai Metals $ 31.00 $ 3.60 $ 7,000 2/15, net 30 400 2.00 % 2.00 % 1 $ 436 Homework 2: Total Cost of Ownership Ocean transport (per FEU) Marine cargo insurance (% declared value) U.S. Customs duty and fees (% declared value) U.S. port handling and brokerage fees (per FEU) Factory inspection trips to China Domestic U.S. Transportation Costs Full truckload (TL 40,000 lbs.) Less-than-truckload (LTL) Note: per ton-mile = 2,000 pounds per mile Description Purchase cost Packing cost Expected invoice amount Effect of Discount Terms Cash discount Cost of Capital Savings Tooling cost Ordering costs Domestic transportation cost China inland freight and freight forwarding Ocean transport Marine cargo insurance US customs duty and fees US port handling and brokerage fees Quality cost Cost of late delivery Backorders Lost sales China factory inspection trips TOTAL COST $ 3,303 1.5 % 5.2 % $ 1,278 $ 30,000 $ 1.09 per ton-mile $ 1.64 per ton-mile Jackson Castings, Inc. $ 3,895,000 155,800 4,050,800 Shanghai Metals $ 3,287,000 -81,016 -11,252 10,000 10,344 47,519 81,016 247,333 34,527 $ 4,389,271 $ 4,330,044