![]() ![]() Include the excel file with your homework submission in Blackboard. ![]() Note: You should create cost analysis (similar to our in-class assignments) in excel to answer these questions. Given the three bids that Frich received last year, and the new information from Bayfleet, Union, and Fingold develop a sourcing strategy as outlined on the next page. While your predecessor quoted Fingold last year, Frich has not purchased any products from Fingold in the past year. Fingold didn't submit a new cost plus, but told you that they would like your business and will give Frich a 2% reduction from last year's quote. Union told you that their labor costs had increased by 25%. Bayfleet explained the increase was because their material costs had increased 25%. However, at the end of last year, both suppliers called to tell you they needed a 25% price increase moving forward. Both suppliers have good (not great) scorecard scores-both have scores in the upper-80's. Last year, Frich decided to dual source with both Bayfleet and Union. Frich received the following bids from three suppliers: Valves are considered Leverage items, since quality is important, but there are many suppliers for these items. Last year, Frich requested bids for valves that go into the assemblies of the company's engines. As a result, Frich's turbo engines yield a high level of performance for customers. This forced induction, created through the use of turbines, means more air - and more fuel- moves through the combustion chamber as compared to simple atmospheric pressure intake alone. Frich makes engines that use a forced induction device to increase airflow to the engine combustion chamber. Frich Turbo Engines: Using Cost Plus Analysis to Inform Purchasing Decisions You are the new purchasing manager for Frich Turbo Engine Company.
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