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Case: Caledon Concrete Mixers
INTRODUCTION
This a rich case that provides an opportunity to delve into a number of issues, including supplier evaluation systems and trade-offs between service and quality.
IMMEDIATE ISSUE
Evaluate quotations from three gearbox suppliers and select supplier.
BASIC ISSUES
STUDENT ASSIGNMENT
1. How important is quality and performance of the gearbox to CCM's customers? What is the cost of a gearbox quality issue?
2. Is it time for CCM to make a statement to BGK and change suppliers?
3. Do you trust the defect rate data provided by the suppliers?
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