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Case 10-2: CORAL DRUGSCASE SYNOPSIS
Shirley Black glanced at her watch. It was 1 p.m. on January 25, 2001 and only two hours remained before her meeting about Coral Dandruff Shampoo with the vice president of purchasing. As merchandise group coordinator at Coral's head office in Columbus, Ohio, Shirley was trying to decide whether to recommend switching from a large shampoo manufacturer to a small local supplier.
IMMEDIATE ISSUE
Whether or not to switch from a large distant shampoo manufacturer to a small low cost local producer.
BASIC ISSUES
1. Supplier selection
2. Supplier relationships
3. Inventory management and logistics
4. Improving customer value
STUDENT ASSIGNMENT
1. If you were in the position of Shirley Black, what would you recommend to the vice president of purchasing? Why?
2. Do you agree with the way Shirley handled the issue so far? What would you have done differently?
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