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Introduction: Hannah Inc. (Hannah) is interested in changing suppliers for its casted Bronze components (Items 001-034 below). Two potential suppliers (Cotton and Peanut) have been

Introduction: Hannah Inc. (Hannah) is interested in changing suppliers for its casted Bronze components (Items 001-034 below). Two potential suppliers (Cotton and Peanut) have been identified and sent a request for proposal (RFP). Both Cotton and Peanut have submitted their completed RFPs (Below) and are waiting to hear back from Hannah.

1. What is the savings opportunity being offered by each supplier?

A. Peanut

B. Cotton

2. Which item has the highest potential savings and which prospective supplier is the quote from?

3. After reviewing all of the available data, what recommendation would you give to the sourcing team? Please explain.

Below is current supplier data

Incumbent Supplier Item Number Plant Location Volume Price/Unit
ABC Co. 001 Mexico City, Mexico 3,417,000 0.21010
ABC Co. 002 Mexico City, Mexico 6,825,600 0.28200
ABC Co. 003 Mexico City, Mexico 7,497,000 0.21630
ABC Co. 004 Mexico City, Mexico 15,517,000 0.08070
ABC Co. 005 Dallas, Texas 16,860,043 0.06198
ABC Co. 006 Mexico City, Mexico 15,336,000 0.06560
ABC Co. 007 Mexico City, Mexico 3,269,400 0.28200
ABC Co. 008 Mexico City, Mexico 3,226,629 0.23200
ABC Co. 009 Mexico City, Mexico 9,880,000 0.09590
ABC Co. 010 Dallas, Texas 11,501,237 0.04548
ABC Co. 011 Dallas, Texas 58,501,369 0.00372
ABC Co. 012 Dallas, Texas 10,206,964 0.02433
ABC Co. 013 Dallas, Texas 15,960,405 0.03224
ABC Co. 014 Mexico City, Mexico 20,979,000 0.01910
ABC Co. 015 Mexico City, Mexico 9,180,000 0.03410
ABC Co. 016 Mexico City, Mexico 14,190,000 0.01930
ABC Co. 017 Dallas, Texas 60,000 0.37438
ABC Co. 018 Mexico City, Mexico 766,500 0.09690
ABC Co. 019 Mexico City, Mexico 195,000 0.41040
ABC Co. 020 Mexico City, Mexico 210,000 0.41040
ABC Co. 021 Dallas, Texas 849,080 0.12750
ABC Co. 022 Dallas, Texas 1,661,835 0.12735
ABC Co. 023 Mexico City, Mexico 665,000 0.08250
ABC Co. 024 Dallas, Texas 5,226,609 0.03118
ABC Co. 025 Mexico City, Mexico 158,690 0.29980
ABC Co. 026 Mexico City, Mexico 985,000 0.03750
ABC Co. 027 Dallas, Texas 2,313,700 0.00416
ABC Co. 028 Mexico City, Mexico 64,800 0.44600
ABC Co. 029 Mexico City, Mexico 240,000 0.09240
ABC Co. 030 Mexico City, Mexico 800,000 0.02680
ABC Co. 031 McMinville, Tenessee 2,435 9.73310
ABC Co. 032 Mexico City, Mexico 143,065 0.03950
ABC Co. 033 Mexico City, Mexico 120,000 0.03830
ABC Co. 034 Mexico City, Mexico 102,967 0.02410

Below is Cotton data

Cotton
Location: China
Payment Terms: 1% 30, Net 60
Lead Time: 45 days
Item # Price ($USD)
001 0.219
002 0.061
003 0.270
004 0.097
005 0.043
006 0.053
007 0.265
008 0.089
009 0.090
010 0.045
011 0.001
012 0.017
013 0.136
014 0.001
015 0.062
016 0.012
017 0.533
018 0.043
019 0.800
020 0.800
021 0.207
022 0.046
023 0.079
024 0.023
025 0.301
026 0.072
027 0.022
028 0.070
029 0.140
030 0.146
031 2.275
032 0.086
033 0.016
034 0.196

Below is Peanut Data

Peanut
Location: Mexico
Payment Terms: 2% 10, Net 30
Lead Time: 15 days

Item # Price ($USD)
001 0.198
002 0.134
003 0.496
004 0.082
005 0.023
006 0.015
007 0.048
008 0.137
009 0.114
010 0.016
011 0.010
012 0.003
013 0.011
014 0.052
015 0.060
016 0.054
017 0.013
018 0.024
019 0.422
020 0.042
021 0.028
022 0.027
023 0.161
024 0.010
025 0.219
026 0.006
027 0.133
028 0.175
029 0.150
030 0.063
031 1.647
032 0.040
033 0.034
034 0.000
what info is missing ? all given information has been presented

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