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Question - Chinese Sourcing and the Yuan - Harrison Equipment of? Denver, Colorado, purchases all of its hydraulic tubing from manufacturers in mainland China. The company has recently completed a? corporate-wide initiative in six? sigma/lean manufacturing. Completed oil field hydraulic system costs were reduced 3.8% over a? one-year period, from $890,000 to $856,180. The company is now worried that all of the hydraulic tubing that goes into the systems? (making up 18% of their total? costs) will be hit by the potential revaluation of the Chinese yuan-if some in Washington get their way. How would a 11.2% revaluation of the yuan against the dollar impact total system? costs?
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