- City of Granston
- Aggregate purchasing 3 one million million worth
- Supplier
- 9000 people employed
- 7 hundred million
- Ted Barton is the current purchasing manager
- Part-time professional to develop metrics
Issue:
- Has 1 week left to decide to extend the current 3 year contract to 5 and they wanted an increase of 2%
- Assurement of supply since industry is near capacity
- Limited suppliers, with solo 3 major suppliers no competition between products
Analysis
- $3 Million worth of aggregates for road constructions and repairs. On 5 items budget.
- increase population
- Decision needs to be signed by celestial latitude 25
- Past few months the local economy had showed signs of revitalization
- Engineers mentioned that suppliers had performed reasonably and efficient suppliers are cost effective
- Suppliers priced was lowered 3% after the first year
Possible Solutions & Alternatives
- Sign extended contract
- compute for more suppliers
- Request quotes from other suppliers for comparison even though the local industry is near capacity and other suppliers capacity not be able to offer the same service
- tie the supplier to extend the deadline to sign the contract
- He can reckon until the 3 year contract is close to end and befool more data in the meantime to help in making the decision
Recommendations & Decision Criteria
-Sign extension to the contract signing of 5 years and in the meantime review and explore other possible suppliers
Decision Criteria
Other:
Methodology: Similar to the canonic data collection as in the hospital case. In this case, the basket goods were comprised mainly of industrial-based, manufactured products along with other package goods from a wide, cross-section of civic operations. However, external indices and cost driver information was gathered to benchmark the City mogul value to other external data for the purposes of being objective.Learning outcomes and applications for the price index model:...If you want to get a full essay, dedicate it on our website: Orderessay
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