AMD Construction
Read Case 2: AMD Construction from the following text: REQUIRED TEXT (Benton, W. C. Jr. (2010). Purchasing & supply chain management, 2nd ed. New York, McGraw-Hill Irwin) and answer the following questions in a 2-4 page, APA formatted paper.
· Discuss the various steps in the capital equipment acquisition process.
· Develop a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provide a chart to show financial impacts.)
· What is your assessment of the negotiations process, given what you have studied? What are your recommendations for Mr. Reed?
You must justify your conclusions.
Suggestion of format for analysis:
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Current Machine |
CAT-1 machine-purchase |
CAT-1 machine – Lease |
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Operating cost (without operators) |
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Direct Labor |
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Depreciation (straight line) 4 months |
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Lease Expense 4 Months |
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Interest expense at 8% for 4 months |
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Salvage Value after 3 years |
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Unexpected Costs |
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Totals |
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Grading Criteria: |
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Content Criteria |
Weight |
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Discusses the various steps in the capital equipment acquisition process. |
2 |
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Develops a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provides a chart to show financial impacts.) |
2 |
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Assesses the negotiations process, providing recommendations for Mr. Reed. |
2 |
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Writing Skills |
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The content is well organized and presented in a clear manner. |
.5 |
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Sentences are complete, clear and concise. |
.5 |
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Style Criteria |
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The assignment is 2-4 pages, double-spaced and in APA format. |
.5 |
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The assignment includes a cover page that includes: − Title of paper − Student’s name − Course name and number − Instructor’s name − Date submitted |
.25 |
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The assignment includes, on the final page, a list of references that is completed according to APA style as outlined in the approved style guide. |
.25 |
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