CASE BACKGROUND Precision Worldwide, Inc. (PWI) manufactures industrial machines and equipment for sale in many countries. Repair and replacement stir ups account for a considerable part of the companys business. The replacement part in question, make peal, occur in the machines manufactured sole(prenominal) in PWIs Frankfurt Germany plant, but can alike be used on some contenders machines. The steel dodge manufactured by PWI has an average public feel of astir(predicate) 2 months. Machines require between 2 and 6 sound to operate. Individual rings are replaced as they grind out. Over the years, competition had increased and now a rivalry company, the French firm Henri Poulenc, has entered the market with a top-flight pliant ring that replaces the steel ring. The waxy ring is little dearly-won to manufacture and has a longer life. Scenario: The PWI sales manager, Gerhard Henk, is asking when this yield will be available for him to sell that his competitor a lready has on the market, particularly in France where the competitor is the strongest. Bodo Eisenbach, the PWI organic evolution Engineer, estimates the plastic rings can be produced in nigh 4 months at a tool and equipment cost of around $7,500. PWI latestly has about $390,000 worth of special steel in live inventory that cannot be sold, even for scrap. Patrick Corrigan, from the parent company spokesman, expects Thorborg to scour out all steel supplies.
If sales of the steel ring continue until the plastic rings were ready for the market about 15, snow rings would remain in stock upon the plastic rings un load date. Information supplied from PWIs ! cost accounting department: fudge A: 100 Plastic Rings 100 make Rings Material $ 17.65 $ 321.90 Direct Labor $ 65.50 $ 196.50 Overgead * departmental $ 131.00 $ 393.00 Administrative $ 65.50 $ 196.50 do (cost) $...If you want to get a sufficient essay, order it on our website:
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