• Individual Assignment #2: Outsourcing Case Study
• General Motors: Supplier Selection for Innovation
• Paper – 6 to 10 pages
• Perform a cost analysis on all suppliers
• Compare each suppliers Cost, Piece price, Number of days in transit, Average # of days at GM, and inventory carrying cost for the Chevrolet Bolt Electric and the Autonomous Vehicle. Use a hurdle rate of 15%. (Hint: you should have 2 charts to show the comparison of each type of vehicles for all 4 suppliers)
• Provide a non-quantitative analysis of the pros/cons of the four suppliers
• What factors should GM consider when evaluating the supplier and its product capabilities?
• Consider the importance of the IP and its impact to GM
• How does the geographical location affect GM’s decision?
• Should GM rely on a sole source or multiple suppliers
• As with most case studies – there are no wrong answers only some answers that are better than others!