Air Comfort Products

The company's 1895 fans are in the middle of the premium market (putting them ahead of the Northwind line). These fans are manufactured entirely within the United States, a fact which is exploited in the company's advertising and positioning as "America's Fan Company." However, components for the 1895 product line are purchased from sources both in Hong Kong and Taiwan and are assembled in the United States from these "subpacks."

At this point, the company has identified four possible alternatives for its outsourcing needs: continue with the current Taiwanese vendor; change to a different Taiwanese vendor; integrate the assembly process in the United States; and begin using maquiladoras in Mexico for assembly.

When considering each of these alternatives, it is important to consider not just the obvious (and easily quantifiable) labor and shipping costs. In addition, issues such as reliability, quality and working relationships must be considered. It is these qualitative factors which can make the outsourcing decision challenging.

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Some common words found in the essay are:
Changing Taiwanese, Taiwan United, Kong Taiwan, Taiwan Mexico, Mexico Taiwan, ACP's American, Emerson Electric, taiwanese vendor, Fan Company, current taiwanese vendor, current taiwanese, Products ACP, product line, vendor acp, acp experience, level automation, mexico maquiladora, labor costs, northwind line, premium market,
Approximate Word count = 1183
Approximate Pages = 5 (250 words per page)

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