1 What should Dell consider when evaluating the impact of an offshoring decision according to Ferreira...

1 What should Dell consider when evaluating the impact of an offshoring decision according to Ferreira and Prokopest?

Expert Solution

The impact of offshoring on the elements of total cost:

Supplier price : costs from direct materials, direct labor, indirect labor, local taxes, manufacturing costs.

Terms : payment terms,

Delivery costs : in-country transportation, ocean/air freight,

Inventory and warehousing : include in-plant inventories, in-plant handling, supply chain inventories, and supply chain warehousing costs.

Cost of quality : cost of validation, cost of performance drop due to poorer quality.

Customer duties, value added-taxes, local tax incentives.

Cost of risk, procurement staff, broker fees, infrastructure, and tooling and mold costs.

Exchange rate trends and their impact on cost

offshoring may result in failure if only focusing on production unit cost rather than total cost
Ignoring critical risk factors.
Global supply chain with offshoring increases the length and duration of information, product, and cash flows.

keosha answered 5 months ago

What factors should one consider when faced with a decision.

What are the qualitative factors you should consider as an analyst when evaluating a company's likely...

What are the qualitative factors you should consider as an analyst when evaluating a company's likely future financial performance? Why? What would be your decision for a company with very satisfactory financial performance but on the other hand not having well reputation in market? (I need 500 words and more details)

When should managers consider decentralized decision making? What benefits might emerge?

What are some qualitative factors that analysts should consider when evaluating a company's likely future financial...

What are some qualitative factors that analysts should consider when evaluating a company's likely future financial performance?

Organizational Behaviour Quiz 1. When assessing the ethics of a decision, you should: Multiple Choice consider...

Organizational Behaviour Quiz 1. When assessing the ethics of a decision, you should: Multiple Choice consider its implications against all three principles described in the textbook. avoid considering the decision's moral intensity until after the decision has been made. apply any one—but NEVER more than one—of the four ethics principles to evaluate the decision. rely mainly on the utilitarianism principle. rely mainly on your level of collectivism. 2. Social support has what effect on work-related stress? Multiple Choice It does...

When evaluating a patient’s response to a drug, which factors should you should consider? (Select all...

When evaluating a patient’s response to a drug, which factors should you should consider? (Select all that apply.) When evaluating a patient’s response to a drug, which factors should you should consider? (Select all that apply.) Response: The clarity of all written drug orders Response: The expected side effects of the drug Response: The reason the drug was prescribed Response: The therapeutic effects of the drug Response: The timing of the prescribed drug Response: The adverse effects of the drug

Briefly Explain clearly and concisely as possible When evaluating a capital investment decision, what is the...

Briefly Explain clearly and concisely as possible When evaluating a capital investment decision, what is the difference between a sensitivity analysis and a scenario analysis? Why are these types of analyses necessary? 2. Give two reasons why a company's cost of equity is always greater than its cost of debt. (Hint: one has to do with risk, and the other with taxes.

There are primary and secondary decision tools when evaluating capital expenditure projects. What are some of...

There are primary and secondary decision tools when evaluating capital expenditure projects. What are some of the considerations that a finance manager should take into account when deciding whether the firm should embark on a project and why?

According to the tactical decision making guidelines, only relevant costs should be considered. What is a...

According to the tactical decision making guidelines, only relevant costs should be considered. What is a relevant cost, and how does one determine relevance? Explain why it might be difficult for decision maker to ignore sunk costs. Support your position with references.

what external factors will you consider when making a decision

Question