Our second case study discussion questions on "The Global Sourcing Wire Harness Decision(Pg. 817) requires completing total cost calculations for both options. I will not require students to post a reply to another's student's response for these questions. You will have two weeks to post a response to this question. If any of you get stuck on the calculations, please reach out to me. (30 Points) Please read Case #2 (pg. 817) from your textbook titled The Global Sourcing Wire Harness Decision. and answer the question below: - Calculate the total cost per unit for both options (Original Wire \& Happy Lucky Assemblies) and based on those calculations which supplier should Sheila recommend? (20 Points) - What other issues beside cost should Sheila consider? What may be some of the risks associated with awarding the contract to Happy Lucky Assemblies? What might be some of the supplier quality requirements that Sheila may insist on to be in the contract? (10 Points) Reminder you must post a response to this question which includes just the total cost for each option and which option you recommend in order to get full credit (30 points). Due Date by 11/15/2022 by class time (5:30pm) The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24126-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolink's corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, harnessin 3 T !!! be prepackaged in 24126-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolink's corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolink's assembly operations are possible. Original Wire Quote: - Unit price =$30 - Packing costs =$0.75 per unit - Tooling = $6,000 one-time fixed charge - Freight cost =$5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: - Unit price =$19.50 - Shipping lead time = Eight weeks - Tooling =$3,000