ts es ces 1 The readings for Chapter 8 discuss the concept of Total Cost Sourcing as a general concept to ensure that in the hurry and frenzy to reduce costs of the supply chain they do not forget to include all potential costs in the calculations. The "Total" in Total Cost Sourcing requires you to consider all types of costs, direct, indirect as reflected in the statement: "With globalization came the importance of total landed cost calculation, which included tariffs and duties as well. Moreover, dramatically different lead times between domestic and off-shore sources have made it necessary to consider such things as transit times and the resulting extra safety stocks required. These other factors become critical in making sourcing decisions, as they can impact a company's agility-the speed and reliability of product introductions, the ability to ramp up and down with demand fluctuations, and the amount of markdowns and write-offs when it is time to retire the product." Regardless, given these considerations, it is important to be aware of and calculate the total costs of sourcing. POST: Given the reading from Table 8.1 in the Chapter on page 236, select a company that you are familiar with. Explain how the three main costs of calculating the total supply chain costs, often called Total Cost of Ownership (TCO) apply to that firm. Be sure to note an example for each of the three costs that apply to the company. (Please: Use a specific company that you can name NOT an industry or some general category or type of firm.) RESPONSE: Examine the posts provided by your classmates on the Total Cost of Ownership of the supply chain- select a post that is in an industry that you have some knowledge or awareness of, and comment on two examples of possible increased costs of ownership that might be incurred if a firm decided to reduce the risk of supply chain disruptions by reducing their supply chain to domestic sources and vendors throughout the supply chain. 0

The readings for Chapter 8 discuss the concept of Iotal Cost 5 aurcing is a general concept to enuer that in the hurry arnd frenty to reduce costs of of costs, direct, indrect as neflected in the staternent: "With globalization came the importance of total landed cost calculation which included tariffs and duties as well. Moreover, dramatically different lead times between domestic and off-shore sources have made it necessary to consider such things as transit times and the resulting extra safety stocks required. These other factors become critical in making sourcing decisons, as they can impact a comeanys ability-the speed and rifiability of product introdoctions, the abily to ramp up and down with demand fuctuations, and the amount of makdowns and write-offs when it is time to retife the product" Recardles, given therse considerations, it is important to be aware of and calculate the total costs of voureine. POST: Given the reading from Table 81 in the Chapter on page 236, select a company that you are familiar with. Explain how the thee inain costs of calculating the total supply chain costs, often called Total Cost of Ownership (TCO) apply to that firm. Be sure to note an example for each of the three costs that apply to the company. (Please: Use a specific company that you can name NOT an indaitry or some general cotiory or type of firm.) RESPONSE: Examine the posts provided by vour classmates on the Total Cost of Ownership of the supply chain- select a post that is in an industry that you have some knowledge or amareness of, and coenment on two ecamples of possible increased costs of ownership that might be incurred if a furm decided to reduce the risk of supply chain dkruptions by redocing their supply chain to domestic sources and vendors throughout the supply chain