You are on page 1of 4

c 

  





 
 

  


  !
 is a well established manufacturer of mainframe computers.
The management has decided to outsource the 15-inch flat panel monitors for the next
product model.

Source selection team for the new product is

V rne Borg
V Oevin Rice
V `ohn Harper

Source selection team selected 4 teams. List of the potential suppliers selected by the
source selection team are

1. Reese Corporation
2. Cappozi Manufacturers
3. Oruger Corporation
4. Payne Industries

The estimated contract for about $ 250 million, the prices quoted by the companies
are

·  

·  

   ^

   ^

   ^ 


    ^

 ^ 

mong these four, as a supply chain manager of   !
" I selected
Reese Corporation.

Reasons for the selection are

V They ÿ # $%&, which is in the range of estimated contract.


V Company      when compared to remaining companies¶ i.e. 6548
millions. Graphically

 
 | 
  
    


 
  
^
 
   


V Current ratio and quick ratios are also more which results in that company is
ready to pay bills in time.
V  
 ##  
    i.e. 102% when compare to others, which is
good in production.

    

  

  

  


  


   

ü   
V    #   
      which shows ability to earn positive cash
flow which is good for both companies.

—

   
  

  

   —  


   

   ^

V   #   
      when compare to others which also shows
ability to earn positive cash flow.

   


   

   

   !  


   

 ^   ü 

V Time interest earned is also more i.e. 16.8 which results in good long term
financial strengths.

 
  
   

   

   "   #


   

   ^
V R&D expenditures are very low when compare to other companies.

   

 
 




 
^ 
 
^


 


You might also like