Automobile subsystems Inc.

is a designer of combined mechanical and electronic subsystems

for control and command modules in automobiles and trucks. It does not manufacture these
systems itself, but rather outsources the produc on of components according to the various
kinds of exper se required, and has another rm assemble the system where dexterous labour
is cheap.
VinFast’s new automobile suspension system consists in a SOC (system on a chip), 4 actuators
(one each wheel of the car) and cabling. VinFast needs one million automobile suspension
systems for the 2022 models. Your company par cipates in the value chain producing the
automobile suspension system by designing this subsystem and selling the nal product to
VinFast.
Transac ons and value added
1. VinFast will contact you for a quote.
2. You will have to calculate that price based on your costs and value added.
• Get a price from your supplier: System Assembly Inc.
• System Assembly Inc. will ship the subsystem directly to VinFast on your behalf.
• Your costs = the price of System Assembly Inc.
• You add a value of 100 to each unit produced for your design.
3. Quote a price to VinFast.
4. Close the sale.
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