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We need to figure out if we want to source glass from at Moraine vs. Tianjin. With potential Improvements, compare the relative costs of sourcing

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We need to figure out if we want to source glass from at Moraine vs. Tianjin. With potential Improvements, compare the relative costs of sourcing from each location. For example, from Exhibit 16, labor cost per windshield at Moraine was $2393. Fuyao expected labor yield in Moraine to improve from 81% to 93% and number of workers per line to decrease from 63 to 59. So, expected costs of labor per windshield with learning are expected to fall to $23.93x(81X/93%)/50/63)-$13.44 at Moraine. In a similar mannet, for each item below. estimate the future expected cost in Moraine and Tianjin using Ex 16 and improvements suggested in the case. Labor you will find the number for Moraine above but you still need to calculate for Tianjin) b) Electricity Other Manufacturing d) SGEA el Raw Materials Depreciation Assoming packaging does not change and shipping rates from the 17 are $2.13 from Moraine and 515 33 per windshield from Tianjin, from where would you source? www Topecon Le 150 Pada MI hey 3 We need to figure out if we want to source glass from at Moraine vs. Tianjin. With potential Improvements, compare the relative costs of sourcing from each location. For example, from Exhibit 16, labor cost per windshield at Moraine was $2393. Fuyao expected labor yield in Moraine to improve from 81% to 93% and number of workers per line to decrease from 63 to 59. So, expected costs of labor per windshield with learning are expected to fall to $23.93x(81X/93%)/50/63)-$13.44 at Moraine. In a similar mannet, for each item below. estimate the future expected cost in Moraine and Tianjin using Ex 16 and improvements suggested in the case. Labor you will find the number for Moraine above but you still need to calculate for Tianjin) b) Electricity Other Manufacturing d) SGEA el Raw Materials Depreciation Assoming packaging does not change and shipping rates from the 17 are $2.13 from Moraine and 515 33 per windshield from Tianjin, from where would you source? www Topecon Le 150 Pada MI hey 3

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