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Suds and Soaps, Inc. is the supply company where SOS buys all its hygiene products like soap, shampoo, body wash, etc. Suds and Soaps has

Suds and Soaps, Inc. is the supply company where SOS buys all its hygiene products like soap, shampoo, body wash, etc. Suds and Soaps has been late with its supply delivery five times in the last two months. This forced SOS to purchase supplies last minute from a local box store at almost twice the price. If the late deliveries continue, it will affect SOS's bottom line. Because of this, you are considering ending SOS's partnership with Suds and Soaps. Should SOS: Option A: Start buying hygiene products locally to avoid delivery delays. If SOS is responsible for procuring the needed supplies locally, it will never have to depend on another company's promptness. This option would also allow a greater variety of products to be purchased, but the company would lose out on bulk buying incentives. This would likely result in an overall cost increase of 40%, but the company would never have to worry about late deliveries again. Option B: Buy out Suds and Soaps, Inc. This option would bring product production in-house. This would make SOS responsible for manufacturing the products used in their shower trailers. Suds and Soaps shared with you that they cannot afford to make

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