Lenovo uses the ZX-81 chip in some of its laptop computers. The prices for the chip during the last 12 months were as follows: Month January February March April May June Price Per Chip $1.90 $1.61 $1.60 $1.85 $1.91 $1.95 Month July August September October November December Jul 1.90 Price Per Chip $2.00 $1.70 $1.70 $1.55 $1.50 $1.75 D This exercise contains only parts a, b, and c. a) Using a 2-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Month Mar Apr May Jun Jul Aug Sep Oct Nov Dec Forecast $1.76 1.61 1.73 1.88 1.93 1.98 1.85 1.70 1.63 1.53 b) Using a 3-month moving average, the forecast for periods 11 and 12 is (round your responses to two decimal places): Oct Nov Dec Month Apr May Jun Forecast $1.70 1.69 1.79 Aug Sep 1.95 1.88 1.80
Q: Fabricators, Inc. wants to increase capacity by adding a new machine. The fixed costs for machine A…
A: Breakeven Point is that level of sales at which there is no profit no loss. In other words at…
Q: A particular branch of ABC Co. is experiencing some inventory control problems. The manager…
A: If we like to employ proper management, here, we will order the EOQ quantity, first, I will…
Q: a. What is the cost of the optimal crew assignment? Cost of optimal crew assignment b. Which crews…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: IL (S/cwt) Weight/day 18,000 lb (18C
A: Given: Shipment Transportation Rate ($/cwt) City Weight/day LTL<50000lb TL>50000lb…
Q: Brenda Mage, an undergraduate accountancy major at Ateneo de Zamboanga University, is attempting to…
A:
Q: Porter five forces model, developed by Michael E. Porter of Harvard University in 1979, holds the…
A: Model P is a structure that helps assess a company’s competition. This helps to evaluate a company…
Q: Supply Chain Management?
A: Supply chain management is the cycle by which production network exercises are figured out how to…
Q: Solve the provided model please. Max 00.10x + 00.15y + 00.20z s.t. .87x + .89y+.91z = 0
A: Linear programming is a mathematical technique that is also used in operations management…
Q: nd: None ot ze WC Setup (min) 50 30 45 Bill of Mate Run Time (min/unit 4.0
A: Given: Data for routing file: Part Lot size WC Setup(min) Run Time Z 50 30 45 4.0 D 80 40 30…
Q: A group of 6 jobs is to be processed through a 2-step operation. The 1st involves cleaning and the…
A: Sequencing is an appropriate order of plan as per which the process of operations works. It defines…
Q: Based on the following sequential decision tree, compute the expected payoff of node 7. It is (type…
A: A decision tree is the analysis of the options that are to be considered or chosen among to take the…
Q: Required: 1. Using the least-squares regression method, estimate the variable utilities cost per ton…
A: Mathematic models of decision-making help businesses take the correct decision for their operational…
Q: B/ solve the following linear programming problem using graphical method Min (z) = 300x₁+200x2 S.T.…
A: A graphical method of linear programming is used to find an optimal solution to a linear program.…
Q: 1. How much Engine time is left unused? 2. What is the total profit?…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: Elucidate how you would encourage a junior researcher to act ethically at your organisation to show…
A: Research integrity:- Research integrity refers to a researcher’s right to control his or her own…
Q: Which of the following is an important difference between Service Operations and Manufacturing…
A: Manufacturing operations constitute a framework of labor, machines and materials that combine…
Q: Several graduate students at ABC University formed a company called the ABC River Rafting Company to…
A: Initial investment $2,000 Labor and material cost $5 per raft
Q: a) GOT7 Soda Pop, Inc., has a new fruits drink. The production planner has assembled the following…
A: General notes : This is a case of aggregate plan with multiple possible answers based on the…
Q: 4. Citizens of a country send documents to renew their passport. The average time in the mail is…
A: Value added time refers to the ratio of time spent in adding value to any product or service and the…
Q: The percentages in the table represent the performance change from the previous month. Consider the…
A:
Q: Using trend-adjusted exponential smoothing, Forecasts (F₂), Trend (T₂), and Forecasts Including…
A: Forecasting is a technique used to predict future outcomes on the basis of past data. In businesses…
Q: (a) Use the Northwest-Corner Method, the Least-Cost Method and the VAM to get the starting feasible…
A: The transportation model is used to calculate the minimum cost of the route by selecting different…
Q: Differentiate between locating a service company as opposed to locating a manufacturing.
A: Together with advertising, HR, and perhaps finance, operations are one of a company's key functional…
Q: The first turbocharger, a trial unit, took 1.000 hours to produce. Based on your experience with…
A: Working hours is the time period within which each employee/worker of the company is performing his…
Q: 16. Backward integration is achieved through a. A coalition of the firm's suppliers. b. The purchase…
A: Backward integration generally occurs when the organization wishes to obtain a complete control over…
Q: The number of additional machines required is (Enter your response rounded up to the next whole…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: Intan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4…
A: Note: - As we can answer only up to three subparts, we will answer the first three(i, ii, and iii)…
Q: 8.7 Insurance Company of Latin America (ILA) is consid- ering opening an office in the U.S. The two…
A: The weighted average considers the relative frequency or relevance of particular variables in a data…
Q: An Electrical Utility Startup Problem A problem faced by an electrical utility company each day is…
A: Let us consider the variables A, B, C,D & E represent the Generators A,B,C,D & E. Now, let…
Q: ABC COMPANY uses graphical techniques in its aggregate planning efforts. Over the next 12 months…
A: Production is the process in which inputs are combined to have the required output. It includes a…
Q: What are the capacity requirements for the next four years? (Assume that there is no learning.)…
A: Plastic sprinklers:1 machineCapacity 240,0005 workersTotal available capacity = 240,000 * 1 =…
Q: Cal-Bus Mutual Funds, Inc. located in Pittsburgh. Cal-Bus just obtained $10,000,000 by converting…
A: Decision variables: B = Investment in B&E steel O = Investment in Oakland oil P = Investment in…
Q: Risk identification determines which risks might affect the project and documents their…
A: Project risk management is described as a process through which risks can be prevented. This can be…
Q: The A&M Hobby Shop carries a line of radio-controlled model racing cars. Demand for the cars is…
A:
Q: Walmart (WMT) is robotic janitors in some of its stores. Walmart has purchased several Autonomous…
A: 1. Various advantages that are associated to Walmart of using the employees over robots, a)…
Q: PROBLEM 7 Eyewitness News is shown on channel 5 Monday through Friday evenings from 5:00 P.M. to…
A:
Q: Formulate and solve the following linear program: You are trying to create a budget to optimize the…
A: Maximize Z = 2F + 3S + 5E subject to F + S + E <= 1500 F + S <= 1100 S <= 800 E…
Q: quested b. demand for individual products c. demand for product families d. the demand for the parts…
A: Option a is correct An aggregate plan provides justification for the budget amount requested
Q: The company wants to know how many units of each product to produce on each machine to maximize…
A: Linear programming is a mathematical technique that is also used in operations management…
Q: CLEAN is a local Cleaning company with a good reputation. The company was established in 2014 and…
A: a. SMART objective is an Acronym for Specific, Measurable, Attainable, Reasonable and Time bound…
Q: An operations manager wears many hats in his workplace. Discuss the following roles played by an…
A: Operation manager:- As an operations manager, it’s your responsibility to manage the work flow and…
Q: All of these are goals that the company has identified, with NO priorities. a) Formulate this given…
A:
Q: Why is it important to consider project management competencies like ability, capability, and…
A: A project manager is a key to project success and also part of the reason if a project fails. The…
Q: a) Is this a balanced problem? b) Obtain the initial tableau for the transportation problem
A: The transportation model is used to calculate the minimum cost of the route by selecting different…
Q: Kooyman hardware sells 35 different types of drills. They had demand for 29 of the drills and…
A: Fill rate is the proportion between total demand delivered and total demand of requested. Here, we…
Q: By using and making reference to the case information attached - Explain any 4 reasons for global…
A: The given case is about the challenges faced by company H. The company is facing the issue of…
Q: Colombo Coffee Co is the ultimate coffee shop based in Durban North, has everything a coffee lover…
A: Colombo Coffee Co is the ultimate coffee shop based in Durban North, has everything a coffee lover…
Q: we Need the following: Quantify Labor requirements. (Detail how many employeesyourbusiness will…
A: Main important points to design organizational plan is 1) The association, or how your business is…
Q: Describe at least two key benefits of project management. What key benefits did Telstra realize?
A: Project management This can be defined as a scientific approach to managing the projects for an…
Q: Intan Store sells 240,000 cabinets per year. Based on the company's policy, a safety stock of 4…
A: Given, Annual demand, d =240000 cabinets Carrying cost, h =RM 0.60 Ordering cost, o =RM 150 Lead…
part b)
Step by step
Solved in 3 steps
- 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 24 12 6-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 Autolinks 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 Autolinks 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 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on this case, do you think international purchasing is more or less complex than domestic purchasing? Why? Is it worth the additional effort?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 24 12 6-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 Autolinks 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 Autolinks 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 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Original Wire.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 24 12 6-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 Autolinks 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 Autolinks 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 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on the total cost per unit, which supplier should Sheila recommend?
- 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 24 12 6-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 Autolinks 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 Autolinks 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 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Happy Lucky Assemblies.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 24 12 6-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 Autolinks 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 Autolinks 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 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Are there any other issues besides cost that Sheila should evaluate?Kendrick received the following items during the year: P200,000 donation from his girlfriend; P100,000 service fee from professional services; P300,000 inheritance from his deceased father; P100,000 income from illegal gambling; P50,000 gain on sale of his personal car; P250,000 profits from his bar restaurant How much is the total income subject to regular income tax?
- CASE: FABULOUS FABRICS, Inc. Mwiinga was recently promoted to the managing director’s position at Bwino Fabrics, Inc. in Mufulira. In her new position, Mwiinga first compared the actual revenues and expenses of the company with desired results. Armed with this analysis, he formulated the future course of action for Bwino Fabrics. Mwiinga transmitted her revenue and expense analysis to outsiders such as bankers and other analysts and distributed her desired future course of action for Bwino Fabrics to his subordinates. All these groups then provide him with feedback through reports. Mwiinga is confident he can lead the company into a prosperous future. Unfortunately the company has just made changes in the way it manufactures and markets its products. These changes are producing issues associated with employee motivation and satisfaction. The company has sent some of their manufacturing offshore to South Africa, and their plants have been restructured into self-directed work teams. The…Professor James Adjei was Coordinator of MBA Finance at the School of Graduate studies of the University ofProfessional Studies, Accra. During the admissions process for the 2017/2018 academic year, his wife appliedand gained admission to pursue MBA Finance at the same school. During the course of her studies, her husbandfacilitated the teaching and learning as well as the administration of all end of semester examinations for theprogramme.Unknown to the Management of the University, Mrs. Adjei enrolled and eventually graduated as the bestgraduating student among her cohorts. When Management of the University received information about thisunusual development, they instituted a comprehensive systems audit and an investigation into the circumstancesleading to the eventual emergence of Mrs. Cate Adjei as the best graduating student on the programme.Professor Adjei was granted full hearing to explain what transpired during the period of the wife’s studies. Hedefended that he worked…The following selected accounts are included in the trial balance of Dreyfus Corp. on December 31, 20x2:Debit CreditSupplies on hand P270,000Accrued salaries payable P150,000Interest receivable 510,000Prepaid insurance 9,000,000Unearned rent -Accrued interest payable 1,500,000Additional information are as follows:1. A physical count of supplies on hand on December 31, 20x2 totaled P110,000.2. The accountant failed to adjust the Accrued Salaries Payable account. The accrued salaries payable on December 31, 20x2 totaled P440,000.3. The Interest Receivable account was also left unadjusted on December 31, 20x2. Accrued interest receivable on December 31, 20x2 amounted to P435,00 4. The unexpired portions of the insurance policies totaled P6,500,000 as of December 31, 20x2.5. A total of P2,800,000 was received on January 1, 20x2, for the rent of a building for both 20x2 and 20x3. The total amount received was recognized as revenue in 20x2.6. The correct amount of depreciation for the year…
- Kwaku Issaka is a 14-year boy from a wealthy home. On 21st May 2021, Kwaku Issaka entered a shop in Accra to purchase the following items: PlayStation 5 iPhone 13 Three pairs of men’s formal shoes made by Alexander Kwaku Issaka did not have enough money to pay for all the items at once. He, therefore, entered into an agreement with the shop owner, Mr. Boateng, to pay the outstanding amount owed in five installments. However, after paying the first installment, Kwaku Issaka fell into arrears. The two parties then entered into another agreement under which Kwaku Issaka was to work for Mr. Boateng for a year without any salary for Kwaku Issaka’s debt to be forgiven. Kwaku Issaka has started working, but the work is affecting his school activities to the extent that he was last in his class. Kwaku Issaka’s parents have approached you as a renowned expert in contract law to assist them. Advise them accordingly. Your solution should follow the IRAC Principle is an acronym which depicts,…Star Homes Company a home builder in Sohar purchased various appliances of value RO 5000 from International Appliances Company a retail merchant selling home appliances in Muscat. They were intended to be installed in one of the Star Homes under construction houses and were to be delivered on February 1 between 9:00 am to 5:00 pm. At 5 o’clock on that day, the appliances had not been delivered to Star Homes Office. Star Homes employees waited for a while closed the office and left. Sometimes between 5:00 pm and 6:30 pm International Appliances Company truck came and since was no one present in Star Homes office the delivery man put the appliance in the garage and left. During the night, someone stole the appliance. Star Homes denied that it was responsible for the loss and refused to pay International Appliances Company for the appliances. International Appliances Company filed a case against Star home company claiming for the purchase price. 2-Under the sales of good act is there…Star Homes Company a home builder in Sohar purchased various appliances of value RO 5000 from International Appliances Company a retail merchant selling home appliances in Muscat. They were intended to be installed in one of the Star Homes under construction houses and were to be delivered on February 1 between 9:00 am to 5:00 pm. At 5 o’clock on that day, the appliances had not been delivered to Star Homes Office. Star Homes employees waited for a while closed the office and left. Sometimes between 5:00 pm and 6:30 pm International Appliances Company truck came and since was no one present in Star Homes office the delivery man put the appliance in the garage and left. During the night, someone stole the appliance. Star Homes denied that it was responsible for the loss and refused to pay International Appliances Company for the appliances. International Appliances Company filed a case against Star home company claiming for the purchase price. 3-If you are the judge of the court what…