Case 2-2

Suman Corporation

If you were in the position of Mike Bradie, what is your assessment of the BARAC situation and what purchasing strategies would you adopt?

2. How can supply be guaranteed in a period of market shortages?

3. What should the criteria be for establishing long-term contracts and why are the suppliers interested in obtaining long-term contracts?

4. What are the purchasing risks for Suman and what purchasing risk strategies are available to Mike Bradie in this situation?

5. Can supplier development play a role in this situation?

6. Are there any ethical implications regarding the supply and demand for BARAC?

7. How should Mike Bradie prepare for the negotiations with the BARAC suppliers?