Cost Analysis for Sourcing Alternatives for Emerson Electric Company Acp Division
6 Pages Posted: 23 Jun 2009
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
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Keywords: operations management, purchasing
Suggested Citation: Suggested Citation