What do you think about the hybrid approach? Is it worth paying the local supplier extra to

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What do you think about the hybrid approach? Is it worth paying the local supplier extra to use her as part of a hybrid strategy? For the hybrid approach, assume that management will order a base load of 900 units from the Chinese supplier for each of the two periods, making up any shortfall in each period at the local supplier. Evaluate the NPV of expected profits for the hybrid option assuming a discount factor of k  0.1 per period.

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Supply Chain Management

ISBN: 9780132743952

5th Edition

Authors: Sunil Chopra , Peter Meindl

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