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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

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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