\nDescription
\nBehemoth?Motors?Corp.?(BMC)?is?a?major?manufacturer?of?automobiles?in?the?United?States.?BMC?has?decided
\nto?include?a?Global?Positioning?System?navigator?(GPSN)?in?all?of?its?Sports?Utility?Vehicles?(SUV)?beginning
\nwith?the?2016?model?year.?These?models?are?just?now?being?delivered?and?the?GPSN?units?are?manufactured?in
\nthe?Detroit?BMC?facility.?Currently?and?for?the?foreseeable?future,?BMC?will?need?8,000?GPSNs?per?month.?The
\ntotal?manufacturing?cost?of?the?GSPN?is?$425?per?unit?calculated?as?follows:
\nSee?attachment?for?chart:
\nBMC?experiences?a?high?level?of?quality?control?over?these?units?with?only?2%?of?total?production?failing?quality
\ncontrol?testing.?98%?of?all?units?manufactured?are?installed?in?SUVs.
\nWally?Wizard,?the?GPSN?manager,?has?been?approached?by?Far?East?Enterprises,?Ltd?(FEE)?who?has?offered?to
\noutsource?these?units?for?MBC.?FEE?is?a?three?year?old?electronic?manufacturing?company?located?in?China?and
\nhas?experienced?outstanding?growth?during?that?three?year?period.?FEE?has?offered?to?manufacture?and?deliver?to
\nDetroit?8,000?GPSN?units?at?a?unit?cost?of?$400?beginning?on?Jan.?1,?2016.?FEE?asks?for?a?two?year?contract.
\nUnder?the?existing?arrangement,?the?direct?materials?are?all?purchased?locally?under?month?to?month?contracts.
\nThere?are?no?future?obligations?under?these?contracts.
\nThere?are?100?direct?labor?employees?involved?in?this?process.?These?employees?can?be?laid?off?but?if?they?are,
\nBMC?must?pay?a?penalty?of?$66,000?per?year?to?the?employees?union.?This?penalty?will?continue?for?4?years.
\nThere?are?10?supervisors,?each?earning?$6,000?per?month,?assigned?to?the?project.?If?the?product?is?outsourced,
\nall?of?these?supervisors?can?be?assigned?to?other?supervisory?positions?within?BMC.
\nIf?the?product?is?outsourced,?half?of?the?factory?floor?space?can?be?used?for?storage?for?materials?that?are
\ncurrently?stored?in?rented?storage?facilities.?These?rented?facilities?currently?cost?BMC?$5,000?per?month.?There
\nis?no?alternative?use?for?the?remaining?factory?floor?space.?The?current?$2.50?per?sq.?ft.?charge?is?based?on?the
\noverall?BMC?factory?costs.
\nGeneral?company?overhead?is?first?assigned?to?operating?units?on?the?basis?of?total?product?produced?and?then
\nfurther?to?produced?units?on?a?per?unit?basis.?If?the?product?is?outsourced,?this?overhead?will?be?reassigned?to
\nother?operating?divisions?although?total?corporate?overhead?incurred?will?remain?unchanged.
\nYou?have?determined?the?following?additional?facts.?The?units?manufactured?by?FEE?will?have?the?same?quality
\nas?those?manufactured?by?BMC?and?the?delivery?schedule?will?have?the?same?reliability?as?that?of?BMC.
\nCase?Assignment
\nMake?a?recommendation?to?Wally?Wizard?in?a?3??to?4?page?paper.?Be?sure?to?support?your?recommendation?with
\nthe?decision?making?process?outlined?in?the?background?information.
\nAssignment?Expectations
\nIt?is?important?to?answer?the?questions?above.?The?discussion?should?be?three?to?four?pages?and?written?in?a?clear
\nand?concise?manner.?Support?your?discussion?with?references?in?APA?format.?You?are?encouraged?to?use?Excel
\nor?other?compatible?spreadsheet?when?computations?are?involved.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Description Behemoth?Motors?Corp.?(BMC)?is?a?major?manufacturer?of?automobiles?in?the?United?States.?BMC?has?decided to?include?a?Global?Positioning?System?navigator?(GPSN)?in?all?of?its?Sports?Utility?Vehicles?(SUV)?beginning with?the?2016?model?year.?These?models?are?just?now?being?delivered?and?the?GPSN?units?are?manufactured?in the?Detroit?BMC?facility.?Currently?and?for?the?foreseeable?future,?BMC?will?need?8,000?GPSNs?per?month.?The total?manufacturing?cost?of?the?GSPN?is?$425?per?unit?calculated?as?follows: See?attachment?for?chart: BMC?experiences?a?high?level?of?quality?control?over?these?units?with?only?2%?of?total?production?failing?quality control?testing.?98%?of?all?units?manufactured?are?installed?in?SUVs. Wally?Wizard,?the?GPSN?manager,?has?been?approached?by?Far?East?Enterprises,?Ltd?(FEE)?who?has?offered?to outsource?these?units?for?MBC.?FEE?is?a?three?year?old?electronic?manufacturing?company?located?in?China?and has?experienced?outstanding?growth?during?that?three?year?period.?FEE?has?offered?to?manufacture?and?deliver?to Detroit?8,000?GPSN?units?at?a?unit?cost?of?$400?beginning?on?Jan.?1,?2016.?FEE?asks?for?a?two?year?contract. Under?the?existing?arrangement,?the?direct?materials?are?all?purchased?locally?under?month?to?month?contracts. There?are?no?future?obligations?under?these?contracts. There?are?100?direct?labor?employees?involved?in?this?process.?These?employees?can?be?laid?off?but?if?they?are, BMC?must?pay?a?penalty?of?$66,000?per?year?to?the?employees?union.?This?penalty?will?continue?for?4?years. There?are?10?supervisors,?each?earning?$6,000?per?month,?assigned?to?the?project.?If?the?product?is?outsourced, all?of?these?supervisors?can?be?assigned?to?other?supervisory?positions?within?BMC. If?the?product?is?outsourced,?half?of?the?factory?floor?space?can?be?used?for?storage?for?materials?that?are currently?stored?in?rented?storage?facilities.?These?rented?facilities?currently?cost?BMC?$5,000?per?month.?There is?no?alternative?use?for?the?remaining?factory?floor?space.?The?current?$2.50?per?sq.?ft.?charge?is?based?on?the overall?BMC?factory?costs. General?company?overhead?is?first?assigned?to?operating?units?on?the?basis?of?total?product?produced?and?then further?to?produced?units?on?a?per?unit?basis.?If?the?product?is?outsourced,?this?overhead?will?be?reassigned?to other?operating?divisions?although?total?corporate?overhead?incurred?will?remain?unchanged. You?have?determined?the?following?additional?facts.?The?units?manufactured?by?FEE?will?have?the?same?quality as?those?manufactured?by?BMC?and?the?delivery?schedule?will?have?the?same?reliability?as?that?of?BMC. Case?Assignment Make?a?recommendation?to?Wally?Wizard?in?a?3??to?4?page?paper.?Be?sure?to?support?your?recommendation?with the?decision?making?process?outlined?in?the?background?information. Assignment?Expectations It?is?important?to?answer?the?questions?above.?The?discussion?should?be?three?to?four?pages?and?written?in?a?clear and?concise?manner.?Support?your?discussion?with?references?in?APA?format.?You?are?encouraged?to?use?Excel or?other?compatible?spreadsheet?when?computations?are?involved.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-3546","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/3546","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=3546"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/3546\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=3546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=3546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=3546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}