You need to purchase $6000 of materials for different small projects. There are 150 different types of material required in predetermined quantities with various amounts required for each small project, there are 15 different types of projects. The amounts vary from 0-500 pieces of each material, materials that are required in small quantities are always in small quantities and those required in large quantities are always required in large quantities. You have 4 different geographical regions to buy for in Alberta and Saskatchewan, and each region’s pricing does vary. Each region has at least 4 contracted suppliers and at least as many uncontracted. Market pricing is update weekly.

Make any reasonable assumptions based up your knowledge for any information not given. Provide as many pages of documentation, tables, and analysis as required.

Questions:

A. How do you determine which supplier to use in each region? Provide examples of the analysis with your own data

B. How much of a cost difference can you tolerate between each region?

C. How does Saskatchewan’s recent change to their PST affect your analysis?

D. How would a 10% US tariff on exporting these materials affect your outlook?

E. What terms do you use for the contracts?