IMPACT OF THE PRODUCT SPECS EXAMPLE Global supply chain management Productivity tools Course June 13th 2020

For a specific subassembly thats being meant to the automotive industry, our annual consumption is 3 000 000 units of a certain plastic item. Although this item (part) is not very heavy, because of the complexity of the product (technical requirements) the market price is around $150.00/ 100 unit. Currently, there are only 2 national suppliers complying with the norms in automotive industry for these parts: Supplier A using only Wide resin spec packaged in 25 kg bags and they feed the machinery manually introducing 50 bags in the hopper the same time. Supplier B- spec using Generic prime spec resin but feeding the machine automatically through the air pressurized pipes. The buying price from supplier A is $149.50/ 100 units since the buying price from supplier B is $149.55/100 units. Which is the supplier will be selected? Please explain your decision and illustrate you KPIs calculation