Question: Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price

 Gaining competitive advantage often boils down to getting your product into
the hands of consumers more efficiently, which is to say at a

Gaining competitive advantage often boils down to getting your product into the hands of consumers more efficiently, which is to say at a cheaper price of production. Now it is time to apply your knowledge of competitive advantage principles to an illustrative global supply chain management scenario. IN THIS ASSIGNMENT You are taking over the management of soccer ball production and you are seeking competitive advantage by minimizing unit production costs. You currently operate two plants, one in China and one in Vietnam. Each soccer ball has two main ingredients: an inner bladder (balloon) and an outer covering (cover). In all questions, assume that there are no trade costs. The following table summarizes the number of balloons or covers a workor can produce per day in each of your plants. y. p. 31) states that "differences in wages (and living standards) across countries will tend to reflect productivity in China equals (100+200)/2150. Thelute advantages)." Average productivity per worker in Vietnam equals (200+200)/2=200. Average wages in Vietnam are $120 per day and wages in Chelative wage between Vietnam and China is then expected to be about 200/150=4/3. Suppose strategies to determine which one maximizes your compe are $90 per day, such that the relative wage equals 120/90 4/3. Compare four production - In plan A, you produce covers and balloons in China and you close your Vietnam facility. In plan B. you produce covers and balloons in Vietnam and you close your China plant. In plan C. you produce balloons in Vietnam and covers in China. In plan D, you produce balloons in China and covers in Vietnam. Which production plan minimizes the unit production costs of a soccer ball

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