Determine the exact shipping costs for cards outsourced to China (replacing the assumption of one-half cent per
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 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
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam