TEMKO Earthmovers case #27

TEMKO Earthmovers case #27 (last page on upload to review for case info)

1. Develop a unit cost breakdown for R-208 tractor engines utilizing both available currentdata and assumptions in the process of calculations. State all assumptions

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2. What would the estimated probable cost resulting from poor quality of incoming short-blocks castings? Suggest probable solutions to this quality problem.

3. What could be inferred about the supplier market conditions from the response for therequest for quote? How would the supplier market conditions influence the decision toexpand outsourcing policy?

4. Discuss and define the deference between single sourcing and sole sourcing and in regard tothe relationship between TEMKO and ACE Manufacturing. Include an evaluation of ACEManufacturing’s requests and what could be inferred from them.

5. According to ACE Manufacturing, what would the resulting cost reduction fromoutsourcing to ACE Manufacturing be? Discuss the probable sources of this cost reduction.What would be the consequence of exploiting these sources to TEMKO and ACEManufacturing?

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