-10-
and returned to the core supplier, and Consolidated received a
credit from that core supplier for the amount that Consolidated
had paid for that core. Approximately 3 percent of the cores
sold by Bishop Engine to automobile parts remanufacturers were
not in rebuildable condition and were subsequently returned by
them to Bishop Engine in return for which they received such
credits.
Core supplier cores purchased by Consolidated entered into
its production line almost immediately upon acquisition and
remained in its unprocessed cores raw material inventory for only
a brief period of time. As a consequence, that inventory
consisted almost entirely of customer cores, and not core
supplier cores.
By way of illustration of the remanufacturing process by
which Consolidated produced reconditioned engines in salable
condition, engine customer cores were torn down, stored in its
unprocessed cores raw material inventory, and subsequently placed
into production. If a customer had delivered to Consolidated a
short-block engine customer core, which was an engine customer
core without the heads, Consolidated's employees cleaned off the
casting number, consulted the identification manual to determine
the engine type and core lot number, wrote the core lot number on
the top of that core, and wheeled it into the yard (core yard)
where Consolidated stored its unprocessed cores raw material
inventory. If a customer had delivered to Consolidated a long-
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011