Copy of wire harness calculations

Copy of wire harness calculations - 1,200 Travel to China...

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Wire Harness Case Original Wire quote per unit Annual Cost in $ (72,000 units) unit cost 20 1,440,000 packing 0.5 36,000 tooling 0.07 5,000 freight 0.25 18,000 total 20.82 1,499,000 Happy Lucky per unit Annual Cost in $ (72,000 units) unit cost 10.5 756,000 packing 2 144,000 tooling 0.03 2,500 inland freight in china 0.1 7,200 Freight forwarding fees 0.02 1,200 Ocean freight 2 144,000 Marine insurance 0.06 4,542 12.62 All costs till US port handling 0.6 43,200 Customs duty 0.76 55,007 15.28 All costs till Customs brokerage fees 0.05 3,600 Transport from Seattle to Detroit 1.86 133,920 warehouse charges 3 216,000 $1 per cubic foot and w Cost of capital 0.79 56,669 20.99 Cost of hedging 0.07 4,800 Additional admin time 0.02
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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.

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Copy of wire harness calculations - 1,200 Travel to China...

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