WEEK 5

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: Current Machine CAT-1 machine-purchase CAT-1 machine – Lease Operating cost (without operators) Direct Labor  Depreciation (straight line) 4 months Lease Expense 4 Months Interest expense at 8% for 4 months Salvage Value after 3 years Unexpected Costs Totals Grading Criteria: Content Criteria Weight Discusses the various steps in the capital equipment acquisition process. 2 Develops a comprehensive analysis of the negotiations between Jane Axle and Tom Reed. (Provides a chart to show financial impacts.) 2 Assesses the negotiations process, providing recommendations for Mr. Reed. 2 Writing Skills The content is well organized and presented in a clear manner. .5 Sentences are complete, clear and concise. .5 Style Criteria The assignment is 2-4 pages, double-spaced and in APA format. .5 The assignment includes a cover page that includes: − Title of paper − Student’s name − Course name and number − Instructor’s name − Date submitted .25 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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