1. Based on the risk factors associated with the Bugabyte and the Bugabyte Lite, which product do you think Grunwald and Vogel will recommend as the best candidate for assembly outsourcing?
To decide which product, either Bugabyte or Bugabyte Lite, is the best candidate,
Metrovox has to identify its core competencies and to outsource non-core activities. I personally think Grunwald and Vogel will recommend Bugabyte Lite for assembly outsourcing while Bugabyte to be kept assembling in-house and not to pass out to others to perform.
Bugabyte Lite has been on market for over six years with the same quality but a new look.
It has a well established assembly process and product testing. This helps Metrovox to outsource its Bugabyte…show more content… 3. In the event that Metrovox can outsource the assembly of the circuit boards to an existing supplier, discuss the key contract issues Metrovox will need to consider with their supplier.
Some of the key contract issues are of the following: (1) the quality and volume of the goods being purchased, clearly calculated price of the goods and the currency being used, and the discounts availability as volumes increase; (2) the payment terms, including the payment method and documentation, the payment due, the time frame payment that must be made, and the discounts availability for accelerated payments; (3) the delivery terms, including the delivery method and destination, the delivery dates or expected arrival dates, the expectation for the condition of the good, the transfer of ownership and risk of loss and damage as determined by Incoterms, the type of logistics costs related to imports and transportation are covered in the price, and the responsibilities of paying for the packing, cargo insurance and customs duties; (4) the fulfillment of the standard import and export documentation and regulations when shipping the goods internationally; and (5) the remedies, force majeure, hardship, termination clause and penalty clause if circumstances go beyond one part’s control and make it unreasonably difficult to fulfill.
4. What inventorymanagement strategy should Grunwald and Vogel recommend