The following questions pertain to the discussions on the Case Study 3 “Deere Cost Management”.

1. Do we have enough information to estimate Saunders’ costs? What other data do you want and where would you get it? What is an acceptable profit margin for Saunders for the gatherer chain?

2. How would you handle negotiations with Wayne Saunders? How do you think about the option of developing a new supplier rather than negotiate with Saunders?