Task 2: Sourcing Decision for CosyHome Description: CosyHome is a small home furniture store selling affordable trendy furniture for young people. One of the new products the store plans to sell at the beginning of next year (using the term ‘period’ to represent ‘year’ hereafter) is a vintage 5-tier bookcase. The company has historically outsourced production of its furniture to China, given the lower costs there. For this vintage 5-tier bookcase, it is expected to cost 480 Chinese yuan or renminbi (RMB) per unit to source (inclusive of manufacturing and delivery costs). At the current exchange rate of 4.8 RMB per AUD (i.e., 1 AUD = 4.8 RMB), this gives a variable cost of about 100 AUD per unit. The Chinese supplier, however, has a long lead time, forcing EasyHome to pick an order size well before the product is advertised. T his does not leave the company any flexibility if actual demand differs from the order size. Sourcing from a local supplier can be an alternative but the cost will be higher at 120 AUD per unit. The advantage is the local supplier can supply quickly enough that EasyHome will basically be able to match demand exactly with supply. EasyHome is conscious about the higher variable cost but finds the flexibility of the onshore supplier attractive especially for a new product with uncertain demand. The challenge is to evaluate the value of responsiveness provided by the local supplier. Uncertainties Faced by CosyHome To better compare the two suppliers, CosyHome identifies demand and exchange rates as the two major uncertainties it is facing. If the product were to be sold in the current period, CosyHome estimated that the demand would be 1,500 units per year. Over each of the next two periods, demand may go up by 10 percent, with a probability of 0.5, or down by 10 percent, with a probability of 0.5. Similarly, over each of the next two periods, the RMB may strengthen by 5 percent, with a probability of 0.5, or weaken by 5 percent, with a probability of 0.5. The exchange rate in the current period was 4.8 RMB per AUD. Write My Assignment Hire a Professional Essay & Assignment Writer for completing your Academic Assessments Native Singapore Writers Team 100% Plagiarism-Free Essay Highest Satisfaction Rate Free Revision On-Time Delivery
- WE OFFER THE BEST CUSTOM PAPER WRITING SERVICES. WE HAVE DONE THIS QUESTION BEFORE, WE CAN ALSO DO IT FOR YOU.
- Assignment status: Already Solved By Our Experts
- (USA, AUS, UK & CA PhD. Writers)
- CLICK HERE TO GET A PROFESSIONAL WRITER TO WORK ON THIS PAPER AND OTHER SIMILAR PAPERS, GET A NON PLAGIARIZED PAPER FROM OUR EXPERTS
QUALITY: 100% ORIGINAL PAPER – NO ChatGPT.NO PLAGIARISM – CUSTOM PAPER
Looking for unparalleled custom paper writing services? Our team of experienced professionals at AcademicWritersBay.com is here to provide you with top-notch assistance that caters to your unique needs.
We understand the importance of producing original, high-quality papers that reflect your personal voice and meet the rigorous standards of academia. That’s why we assure you that our work is completely plagiarism-free—we craft bespoke solutions tailored exclusively for you.
Why Choose AcademicWritersBay.com?
- Our papers are 100% original, custom-written from scratch.
- We’re here to support you around the clock, any day of the year.
- You’ll find our prices competitive and reasonable.
- We handle papers across all subjects, regardless of urgency or difficulty.
- Need a paper urgently? We can deliver within 6 hours!
- Relax with our on-time delivery commitment.
- We offer money-back and privacy guarantees to ensure your satisfaction and confidentiality.
- Benefit from unlimited amendments upon request to get the paper you envisioned.
- We pledge our dedication to meeting your expectations and achieving the grade you deserve.
Our Process: Getting started with us is as simple as can be. Here’s how to do it:
- Click on the “Place Your Order” tab at the top or the “Order Now” button at the bottom. You’ll be directed to our order form.
- Provide the specifics of your paper in the “PAPER DETAILS” section.
- Select your academic level, the deadline, and the required number of pages.
- Click on “CREATE ACCOUNT & SIGN IN” to provide your registration details, then “PROCEED TO CHECKOUT.”
- Follow the simple payment instructions and soon, our writers will be hard at work on your paper.
AcademicWritersBay.com is dedicated to expediting the writing process without compromising on quality. Our roster of writers boasts individuals with advanced degrees—Masters and PhDs—in a myriad of disciplines, ensuring that no matter the complexity or field of your assignment, we have the expertise to tackle it with finesse. Our quick turnover doesn’t mean rushed work; it means efficiency and priority handling, ensuring your deadlines are met with the excellence your academics demand.
