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Unformatted text preview: 1,200 Travel to China 0.28 20,000 total 22.14 1,593,838 Domestic sourcing is cheaper by 1.32 Cost Candidates that can be removed from Happy Lucky Quote : Travel, admin time, cost of hedging and tooling. Even with all of this, the foreign quote is high by about If cost of coordination, working with foreign supplier if factored in, it is better to go domestic. For the foreign quote to be attractive, we need to reduce transit time and safety inventory in the wareho ll here but for tooling ll here but for tooling we are storing 3 months of demand or 18000 units t 92 cents/unit ouse....
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This note was uploaded on 07/02/2011 for the course MGSC 487 taught by Professor Jayaram during the Spring '10 term at South Carolina.
- Spring '10