Cost Analysis for Sourcing Alternatives for Emerson Electric Company Acp Division

6 Pages Posted: 23 Jun 2009

See all articles by James R. Freeland

James R. Freeland

Darden Graduate School of Business Administration, University of Virginia

J Chhikara

University of Virginia - Darden School of Business

Edward W. Davis

University of Virginia/Darden Business School

Abstract

This supplement to the case "Emerson Electric Company ACP Division: The Fan Subpack Sourcing Decision" (UVA-OM-0631) contains data from an Excel-spreadsheet model comprising a cost analysis of alternatives described in the case. The supplement is intended for use with executive- education audiences.

Excerpt

UVA-OM-0823

COST ANALYSIS FOR SOURCING ALTERNATIVES

FOR EMERSON ELECTRIC COMPANY'S ACP DIVISION

This supplement contains output from an Excel 5® spreadsheet model that will calculate product landed costs for four alternatives under different assumptions about foreign-exchange rates, productivity, and other factors. The first page provides a summary comparison of the landed cost values calculated by the spreadsheet for one set of assumptions; additional pages provide details for each of the alternatives. The blank spaces on the summary sheet are provided as a guide for calculating a “grand total cost” for each alternative, allowing for costs not included in the spreadsheet model.

Exhibit 1

COST ANALYSIS FOR SOURCING ALTERNATIVES

. . .

Keywords: operations management, purchasing

Suggested Citation

Freeland, James R. and Chhikara, J and Davis, Edward W., Cost Analysis for Sourcing Alternatives for Emerson Electric Company Acp Division. Darden Case No. UVA-OM-0823, Available at SSRN: https://ssrn.com/abstract=1422329 or http://dx.doi.org/10.2139/ssrn.1422329

James R. Freeland (Contact Author)

Darden Graduate School of Business Administration, University of Virginia ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4831 (Phone)
434-243-7699 (Fax)

HOME PAGE: http://faculty.darden.edu/FreelandJ/

J Chhikara

University of Virginia - Darden School of Business

P.O. Box 6550
Charlottesville, VA 22906-6550
United States

Edward W. Davis

University of Virginia/Darden Business School ( email )

445 Ivy Farm Dr.
Charlottesville, VA 22901
United States
434-242-6919 (Phone)

HOME PAGE: http://www.darden.virginia.edu/faculty/davis.htm

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