Micromatic Checklist

Tips:
1. Advantage of expanding (long-term strategy): Cheaper labor wage important competitive advantage Wages per worker per quarter In the US = $7,500 In Europe = 5,500 In China = 9,000 The cost to hire a new worker In the US = $3,000 plus the regular worker wages In Europe = 3,000 plus the regular worker wages In China = 25,000 plus the regular worker wages Laid off workers leave at the beginning of the quarter and return automatically the next quarter. In the US Lay off cost per workers = $3,000 In Europe Lay off cost per workers = 3,000 In China Lay off cost per workers = 700 Carrying cost for the beginning units in raw material inventory are as follows: In the US = $2.00 In Europe = 2.00 In China = 6.00 Finished goods carrying costs are based on the number of beginning units in finished goods inventory. The unit costs are as follows: In the US = $3.00 per unit In Europe = 3.00 per unit In China = 18.00 per unit Dont have to ship for products from other regions (R1 and R2) and usually the cost is very high Between the R1 and R2 = $10.00 Between the R1 and R3 = $19.00 from/to R1 $15.00 from/to R2 Between the R2 and R3 = 19.00 from/to R1 15.00 from/to R2

HOWEVER note that:

Overtime pay rates In the US = $45.00 per unit In Europe = 45.00 per unit In China = 210.00 per unit Worker turnover is computed based upon the number of workers in each region.

In the US and Europe normal turnover is 10%. There is a 7% probability that you'll lose one additional worker per region There is a 3% probability that you will lose two additional workers per region. In China normal turnover is 7%. There is a 15% probability that you'll lose one additional worker per region There is a 7% probability that you will lose two additional workers per region

The cost of subcontracted units is shown on the Material and Inventory Costs screen. Default costs are: In the US = $63.00 per unit In Europe = 63.00 per unit In China = 440.00 per unit

DO NOT SUBCONTRACT IN CHINA!

2. Buy more raw materials if you have a clear strategy! Purchase costs for raw material are as follows: Units ordered 1 9,999 10,000 19,999 20,000 and above Price In the US $10.00 $9.00 $8.00 Price In Europe 10.00 9.00 8.00 Price In China 95.00 80.00 70.00

For the first quarter Have a strategy in mind (either expand to R3 or stay in R1 and R2) Checklist Check research report for this quarter and last quarter to compare sales (to determine whether your marketing strategy is effective or not) (skip for quarter 1) Check your operations to determine the amount of units you are able produce Compare with your research market research for the next quarter (make simple calculation) Determine which regions you want to sell, and the number of units (forecast) Adjust the price accordingly based on sales research (mainly) + other researches + quality + local newspaper, trade publications, web marketing, ad message, features, sales persons Check warehouses for Ending Inventory