Case Details: You are a member of a purchasing team working at X-Digital Co and you are planning to purchase some electronic boards based on the following information. No Product Description Max. Acceptable price/ delivered at our place 1 Electronic Board model 1001 CAD$ 187 2 Electronic Board model 1002 CAD$ 202

• Your factory is in Regina, and your supplier is in Shanghai China. The estimated transit time for ground shipment would be 40 days. The air freight and cargo insurance charge for each board would be CAD $ 7.5.
• You need 52200 pcs of model 1001 and 85800 pcs of model 1002 per year with a fixed monthly consumption rate.
• Preferred Payment condition: Open account , 60 days net from date of delivery.
• Your stock inventory just covers three weeks of consumption, and you need to select a supplier very fast, though you have another potential supplier in BC with average 17% higher prices.
• Any delay in delivery will cause a shutdown and you expect CAD $ 80.000 for each day of delay in delivery of each shipment.
• You need to inspect the products in your production line and the return policy shall cover 2 months free replacement at the costs of the Seller. You also need quality warranty for two years or 4000 working hours.
• You need the product to be packed in cardboard boxes and then palletized.