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Question-1 Based on the risk factors associated with the Bugabyte and Bugabyte Lite, which product do you think Grunwald and Vogel will recommend as the best candidate for assembly outsourcing? Answer: - Based on the risk factors associated with the Bugabyte and Bugabyte Lite, I think Bugabyte is the best product for assembly outsourcing to Grunwald and Vogel. Because Metrovox experiencing production delays in Bugabyte itself due to development of video capability and that contributes their 30 percent delivery rates. On other hand Bugabyte Lite is stable product in market from past two years and Bugabyte is not stable they cannot forecasted demand of Bugabyte and Bugabyte Lite’s margin of error is also much lower than Bugabyte.

Question-2 Based on Grunwald and Vogel’s decision, what will be the benefits and disadvantages of outsourcing the assembly function? Answer: - Benefits for Metrovox: - Grunwald and Vogel has to commit to delivering the assembled circuit boards to meet their delivery schedule and they must maintain high standards what Metrovox applies to their market position and competitive advantages Disadvantage for Metrovox: - Metrovox has to ship both products in same shipment so they have to wait till Grunwald and Vogel’s shipment and then mix both products Bugabyte and Bugabyte Lite in same shipment. Quality and defective rate is sometime concern to management because outsourced product will have which kind of quality they don’t know.

Question-3 In the event that Metrovox can outsource the assembly of the circuit boards to an existing supplier discusses the key contract issues Metrovox will need to consider with their supplier. Answer: - Assembly of the tested components and circuit board takes four weeks and it has very specific measurements for quality testing in terms of soldering of all components like SMD, decoder chip and PLC also. And the circuit board of both Bugabyte and Bugabyte Lite must have to be 10 years of life time. So in the...
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