AMD Construction and Negotiation
Read Case 3: AMD Construction in the text (pg. 448-450) and answer the following questions in a three- to -four 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

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment
Required Text
Benton, W.C. Jr. (2014).  Purchasing and supply chain management (3rd ed.).  New York, NY: McGraw-Hill Irwin.
Articles
Nicholson, D. (2014, April 2). Freelancer.com’s Matt Barrie on how to monetise 5 billion people. Forbes. Retrieved from http://www.forbes.com/sites/davidnicholson/2014/04/02/freelancer-coms-matt-barrie-on-how-to-monetise-5-billion-people/
Teague, P. (2009).  John MacLean, supply chain manager of the year. Purchasing, 138(10), 12. Retrieved from the ProQuest database.
Weissman, R. (2009). Supply chain collaboration drives Subaru plant conversion. Purchasing, 138(7), 56-57. Retrieved from the ProQuest database.
Multimedia
Maven Training videos and podcasts. (2009, May 21). Melanie Franklin is interviewed by the BCS – Part 3 – Interpersonal skills [Video file]. Retrieved from http://www.youtube.com/watch?v=L92yZLQYr1g