-14-
anticipated life cycle as conceptualized by Consolidated.
Consolidated viewed the life cycle of a core as consisting of
three phases. Throughout the first phase of that cycle during
which new automobile parts were being introduced into the market,
customer cores were scarce; Consolidated might have purchased
those parts from manufacturers and cores from core suppliers in
order to have cores from which it was able to produce an
inventory of finished goods; and Consolidated's core amounts
generally were increasing. Throughout the second phase of the
life cycle of a core as conceptualized by Consolidated, customer
core availability increased; Consolidated's inventory need for
customer cores was satisfied through transactions with its
customers and on a special order basis from core suppliers; and
Consolidated's core amounts leveled out and remained relatively
constant. Throughout the third phase of that life cycle,
customer core availability was at its maximum; Consolidated
regularly sold as scrap metal overstocked customer cores in its
unprocessed cores raw material inventory; and Consolidated's core
amounts ordinarily were decreasing.
Other market-related factors that Consolidated considered in
determining the core amount which was part of the remanufactured
automobile part sales price that it charged a customer for a
remanufactured automobile part included the supply of a
particular type of customer core in Consolidated's inventories,
the probability that its customers would decide to provide it
Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 NextLast modified: May 25, 2011