Which are the main reason and argument for offshoring is the lower total cost?
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Which are the main reason and argument for offshoring is the lower total cost?
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- List two reasons offshoring may be risky. What decisions might management reach at the end of the systems analysis phase, and what would be the next step in each case?There are many drivers influencing the offshoring decision. Selecting a dominant driver is the key to a success of an offshoring venture. Supposed your Boston company is planning to develop, manufacture and market a line of luxurious clocks. Several offshoring options are being evaluated. Here is the list of offshoring and internal candidates along with their corresponding engineering hourly burden rates: Shanghai ($20) St. Petersburg ($45) Dallas ($85) Honolulu ($120) Berlin ($200) Zurich ($300) After the first round of various considerations and responding to RFPs (Request for Proposals), China, Russia, Texas and Hawaii dropped out. An extensive second round resulted in Swiss winning the contract. Of the following four key drivers, which one is the most probable dominant factor at the top of the list of the decision making? to get a shot at even a small chance on a global market, you must hire the best possible people, the strongest talent... and forget about any other…The main reason for offshoring is lower item price. lower wages. lower total cost. higher productivity.
- How will you mitigate the action in terms of your material and logistics management?Are there any possible savings in costs that may be realised by outsourcing that a company could take advantage of?Toyota SA Motors (TSAM) has announced a R4.28bn investment in local vehicle assembly and partssupply. Speaking at the company’s annual State of the Motor Industry address at Kyalami on Thursday,president and CEO Andrew Kirby said the lion’s share of R2.43bn would go towards the production ofa new passenger-car model from October 2021 at the Prospecton plant in KwaZulu-Natal.The new car, which he did not name, will replace the Corolla model line that will end in 2020. TSAMalso announced it will build a Toyota Hybrid Synergy Drive vehicle, in a first for the continent. Kirbysaid the investment will inject R2.85bn a year into the South African economy and create about 1,500new jobs. He noted that the deal was made possible due to industrial policy certainty in the form ofthe Automotive Production and Development Programme, the government’s incentive plan for themotor industry. The next phase of the APDP runs from 2021 to 2035.TSAM has boosted the local economy with more than R12bn in…
- Read the scenario below and answer the questions that follow: Well-Designed is a kiddies clothing company, based in the Northern Cape, South Africa. They design their products locally and send those designs and quantities per item to a manufacturer in China, who produces and sends the products to South Africa for Well-designed to distribute. The business has been expanding steadily in the last five years, but more significantly in the last two years, since they have started selling some of their products in Botswana and Lesotho, through retailers there. They have recently partnered with a Zimbabwean retailer, who has given a year’s worth of orders, for a wide range of products Q.1.1 Contrast between the weighted moving average or customer surveys as a forecasting tool and make a justified recommendation on the best choice for WellDesigned. Note: make a choice and provide at least two application points to support the choice in forecasting method. Q1.2 Examine how procurement can…A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $13 million. The variable cost of labor and materials are $13.00 per breaker. The company has an offer from a major subcontractor to produce the part for $23.00 per breaker. a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly? The company should consume rounded to the nearest whole number.) breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total cost would be $8 million, which also includes management oversight…A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $10 million. The variable cost of labor and materials are $15.00 per breaker. The company has an offer from a major subcontractor to produce the part for $22.00 per breaker. a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly? The company should consume View an example Get more help - breakers per year to make the manufacturing the part in-house option the least costly. (Enter your response rounded to the nearest whole number.) Clear all Check answer
- A global manufacturer of electrical switching equipment (ESE) is considering outsourcing the manufacturing of an electrical breaker used in the manufacturing of switch boards. The company estimates that the annual fixed cost of manufacturing the part in-house, which includes equipment, maintenance, and management, amounts to $8 million. The variable cost of labor and materials are $11.00 per breaker. The company has an offer from a major subcontractor to produce the part for $16.00 per breaker.a. How many breakers would the electrical switching equipment company need per year to make the in-house option the least costly?b. Assume the subcontractor wants the company to share in the costs of the equipment. The ESE company estimates that the total annual cost would be $5 million, which also includes management oversight for the new supply contract. For this concession, the subcontractor will dropthe per-unit price to $12.00. Under this assumption, how many breakers would the ESE company…Explain to what extent will outsourcing be used ?GEW is an electronics component manufacturer that has been located in Bahamas since 1991, supplying originalequipment manufacturers (OEMs) with quality components. In the past several years, GEW has experienced increasingpressure from other manufacturers located in other countries. In Bahamas, while labor remains quite inexpensive, there hasbeen a relatively steady increase in labor costs. In addition, utility costs most notably water and energy costs have led thefirm to contemplate moving operations elsewhere in Asia and Africa to make the firm more competitive. GEW remainsprofitable, but margins have shrunk, and management is interested in ensuring that the firm remains competitive againstother component manufacturers in the medium term to long term.A senior management team has formed a committee to reach a decision regarding possible relocation. The committee hasidentified two additional locations as possible candidates for relocation: Hong Kong (People’s Republic of China [PRC])…