We have a client who is looking at installing a factory in Mexico that will manufacture components for

her smart phone business. In general her decision is based highly on two factors; cheap labour and the

cost of the building. She has been quoted $3$ million dollars less to build the factory in Mexico city than in

Okazaki Japan where the device will be marketed and sold. In her mind the cost savings in the building

will far outweigh the additional costs of shipping the product to Japan. She may or may not be right but

she$$s using very baseline costs to make her decision and we as Global Sourcers know that$$s a dangerous

mindset.

So let$$s put together a presentation that is two$-$fold......let$$s first talk about Total Cost of Ownership to

help her consider other costs she may not be considering. And let$$s follow that up with an evaluation of

each area using the EPIC tool to see if there are any other qualitative or quantitative reasons she may

want to consider. As well maybe come up with some reasons why the Mexico City building is so cheap

to build? It just can$$t be cheap labour can it$?$ This will take a lot of research so best to get started

quickly. Explain your assumptions, reasons, analysis and recommendations