Case Study Overview
Sourcing of a new sub-component
Your company, based near Wilmington, N.C., needs to source a new sub-component that will be a key element in a new product that is due to start production next year. Your boss contacted three producers of the sub-component and obtained the cost information below.
Your boss has asked you to provide a detailed spreadsheet of the cost and provide a recommendation on which firm would be able to provide the sub-component at the best price. She needs to brief the CEO next week. Since your firm has worked with all three of the producers before, and all have a good record of providing sub-components, the decision will be solely based on the lowest cost.
Additional Shipping Information
10,000 units of the sub-component will fit into a 40-foot shipping container, so to keep the shipping cost down; all three firms will ship full containers each time an order is placed.
