Case Study

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Introduction To choose the best suppliers for our various components, all existing suppliers are evaluated. Cost per item, accounts payable (A/P) terms, actual delivery time, average days late on delivery, and total ordered quantity are calculated and compared. Because on time delivery is vital to our daily operation, delivery time and average days late are considered the most important criteria. Based on this evaluation, suppliers recommended for each component are listed below. Airframe fasteners * Primary supplier: Durrable Products Providing the longest A/P term (45 days), Durrable Products’ shipments are 100% on time and charges the lowest price per item ($4.20) compared to the other two suppliers. Now only about 20% of…show more content…
Their shipments are only 0.67 day late on average. Panel Decal Panel decal is now only supplied by one supplier, Manley Valve. This supplier offers $1.00 for each item and an A/P term of 30 days. Our record shows that their delivery takes 6 days, 1 day behind the schedule. I recommend increase the number of suppliers for panel decal so we can compare the price and delivery time, as well as lower the risk of stock out. Pressure Gauge * Primary supplier: Durrable Products Providing the longest A/P term (45 days), Durrable Products’ shipments are 0.5 day earlier than scheduled. They also charge the lowest price per item ($90) compared to the other two suppliers. * Alternative supplier: Manley Valve Although price per item is relatively high ($100.50), Manley Valve has a shorter delivery time (about 8 days) overall, only 0.67 day late on average. Their A/P term is 30 days. Shielded Cable/ft. * Primary supplier: Hulkey Fasteners This supplier offers the lowest price ($0.95 per item) and their shipments always arrive 1 day early. They offer an A/P term of 30 days, and have faster delivery, about 7 days. * Alternative supplier: Durrable Products This supplier charges the second lowest price per item ($1.00), and offers the longest A/P term (45 days). Their shipments usually arrive 1 day late. Side Panel * Primary supplier:

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