BisElectronics is a company that create and deliver solutions for data storage. Their main manufacturing facility is in the west coast of Puerto Rico. Recently the company has acquired 3 more companies to add more diversity to their product portfolio. The 3 new products from the acquisition are on new product introduction phase (NPI). In this phase the Supply Chain, Material Engineering (ME), Product Engineering and Manufacturing Engineering Department are analyzing the impact on current production schedules with the addition of 3 more products.

The ME department has identified 120 new materials and 60 existing materials in the new products. For the new material, a Request for Quote has been sent to all partner distributors and direct manufacturers.

There is a tariff of 25% of component price for each component that is manufactured in China.

The commodity manager (CM) has already identified the best potential supplier using as criteria: business relations with suppliers, unit price and minimum order quantity. There is one criterion that needs to be added to the analysis: the inbound cost. Using the data provided for component prices, restrictions, fees, shipment and packaging method, carriers and cost per pound we want to determine for each component, who to buy it from, the quantity what shipment and packing method to use, the carrier, lead time and total price.

Hints:

• Do a deep analysis for the top components based on spending and leverage to other components.
• Calculate Extended EMU and Spending (table 2)
• Compare between regions, suppliers, carrier, method (pallets vs single unit), cost, etc.
• Ocean shipments options have a 35% increase in LT and 25% decrease on CPP from regions (specified in table 3)
• Ocean shipments have a minimum of 2 pallets needed

Table 3: Supplier Quotes details

Supplier	PN	Weight per unit	Price ($)	LT (wks)	MOQ	Ship From	Region	COO	Ship Ocean
Supp1	10011	1.3	19.50	6	500	China	APAC	China	x
Supp2	10011	1.3	32.00	4	500	USA	AMS	China	x
Supp3	10011	1.3	20.00	10	450	Thailand	APAC	Thailand
Supp4	10011	1.3	15.00	10	600	Germany	EMEA	Germany
Supp1	10014	0.75	17.00	8	400	China	APAC	China
Supp2	10014	0.75	22.00	4	450	USA	AMS	USA
Supp3	10014	0.75	18.75	12	400	Singapore	APAC	Singapore
Supp4	10014	0.75	12.60	18	800	Thailand	APAC	Thailand	x
Supp1	10018	0.25	6.00	5	1000	USA	AMS	USA
Supp2	10018	0.25	5.00	5	1200	Mexico	AMS	Mexico
Supp3	10018	0.25	4.50	11	1150	Japan	APAC	China	x

*COO= Country of Origin

Table 4: Carrier cost per pound (CPP) per region

Carrier	Ship from Region
	AMS	APAC	EMEA
DHL	$1.67	$3.00	$3.50
FedEx	$1.50	$7.00	$6.25
UPS Brown	$1.40	$3.10	$2.30

Table 5: Palletization details per carrier

Supplier	Maximum Weight	Palletize Charge	Per extra Pound
DHL	250	$100	$ 0.18
FedEx	175	$150	$ 0.15
UPS Brown	250	$95	$ 0.12