1
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
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
