Case Study Overview

Case Study in a talk bubble.

Sourcing of a new sub$-$component

Your company, based near Wilmington, N$.$C$.,$ needs to source a new sub$-$component that will be a key element in a new product that is due to start production next year. Your boss contacted three producers of the sub$-$component and obtained the cost information below.

Your boss has asked you to provide a detailed spreadsheet of the cost and provide a recommendation on which firm would be able to provide the sub$-$component at the best price. She needs to brief the CEO next week. Since your firm has worked with all three of the producers before, and all have a good record of providing sub$-$components, the decision will be solely based on the lowest cost.

Additional Shipping Information

$10,000$ units of the sub$-$component will fit into a $40-$foot shipping container, so to keep the shipping cost down; all three firms will ship full containers each time an order is placed.