case_study___Tianjin_and_Moraine Fuyao Glass America: Sourcing Decision Assignment

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Fuyao Glass America: Sourcing Decision Assignment



Name

Institution

Course

Instructor

Date

, 2


Fuyao Glass America: Sourcing Decision Assignment


Question 1


 Costs per Windshield


On the basis of Exhibit 16; Comparison of Total Costs per Windshield between Tianjin

and Moraine, following the illustration of Graph 1 and Table 1 to illustrate the differences in cost

between the two locations as follows, Tianjin vs Moraine;



Cost (in USD) Tianjin Morain Difference Target Cost

e between

Moraine

and Tianjin


Raw materials 13.01 19.90 6.89 Total Cost per Windshield (in USD)


Labor 2.28 23.93 21.65


Electricity 1.55 1.58 0.03
Tianjin Moraine


Depreciation 1.55 3.17 1.62


Other 0.88 1.73 0.85

manufacturing

costs


SG&A 6.00 8.00 2.00