How important is the issue of supplier capacity in this case? How did your group evaluate supplier capacity? What level of attention or importance should supplier capacity receive during the sourcing decision? Why?

Supplier Evaluation and Selection

Questions:

1. What is your recommended sourcing strategy in this case? Please support your decision with quantitative and qualitative evidence gathered during the case analysis. Use a weighted score card to evaluate the suppliers (Excel is required for the calculations). Also, present your plan to reduce any risks associated with your sourcing decision.

Note: We have not covered Total Cost of Ownership as yet but you can attempt those calculations (which are really quite straightforward) and it will be treated as a bonus.

2. How important is the issue of supplier capacity in this case? How did your group evaluate supplier capacity? What level of attention or importance should supplier capacity receive during the sourcing decision? Why?

3. The issue of single versus multiple sourcing is an important consideration during supplier selection. Identify the potential advantages and disadvantages of single and multiple sourcing (not only as they relate to this case).

In order to complete this case adequately, you will need to perform various analyses (using Excel where appropriate). These are designed to support the supplier evaluation and selection decision.