Some metallic pan liners for its products

Assignment Help Marketing Management

Reference no: EM131037933

Cornell Cookery Inc. (CCI) needs some metallic pan liners for its products. The current supplier accepts large orders but is only able to supply 5000 liners/day. The current supplier charges 0.47 $/liner. CCI plans an annual demand of 1,000,000 units. They are able to successfully produce this number of product during the 250 operating days. Whenever CCI places an order with any vendor, they typically incur a 128 $/order cost. Carrying cost is typically estimated at 4% of the liner unit cost per year. An upstart supplier is offering the liners to you at a substantial price discount at 0.445 $/liner with the caveat that the minimum order quantity be 100,000 liners with essentially no maximum limit. Due to a recent investment in new technology, they will be able to deliver up to 600,000 liners in a day if needed. Should CCI stay with the current supplier or switch to the upstart rival?

Reference no: EM131037933

Questions Cloud

What strategies will best achieve those objectives : Red Bull GmbH is the largest energy drink seller in the world. As the market leader in energy drink segment, Red Bull’s management team believes it is the time to expand their business into other segments in beverage industry, such as juice segment. ..

Extended adolescence in our culture : How important do you believe physical attraction is for obtaining a date? Why? 2. In what way or ways has the internet affected the process of dating? 3. How has the phenomenon of "extended adolescence" in our culture affected premarital sexuality?

Organization most responsible for setting prices for product : Find the person(s) in your organization most responsible for setting prices for the product or service that you produce and interview them. Discuss how he/she determines priorities and revenue targets and then conducts rate negotiations. As you’re di..

Compare the corporate reputation scores : Compare the corporate reputation scores in Exhibit 7.2 with the brand valuations in Exhibit 7.4. Why does Apple sit at the top of both lists? How has the company used good branding and positioning strategy to achieve this result? How is it that Wells..

Some metallic pan liners for its products : Cornell Cookery Inc. (CCI) needs some metallic pan liners for its products. The current supplier accepts large orders but is only able to supply 5000 liners/day. The current supplier charges 0.47 $/liner. CCI plans an annual demand of 1,000,000 units..

Share the experience of a team conflict : Detail a team building activity that you have found effective. · Share the experience of a team conflict and how it was handled. Give an example of a situation where an individual or an organization had to communicate bad news and your opinion on how..

Reward systems are inconsistent with desired behavior : Do you know of any examples where reward systems are inconsistent with desired behavior? How are personal values related to rewards? What do you find personally satisfying or dissatisfying at work or school? For those things you find dissatisfying, h..

How are personal values related to rewards : What is your own view of what motivates people to work hard and perform well? Do you know of any examples where reward systems are inconsistent with desired behavior? How are personal values related to rewards?

Many good leaders are thought of as good motivators : Many good leaders are thought of as good motivators. How would you rate Barack Obama, Hillary Clinton, John Edwards, Rudy Guiliani, Mitt Romney, and John McCain in terms of their ability to motivate others? What is your own view of what motivates peo..

User Account

All Pages