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Case Study

1007 words - 5 pages

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 ...view middle of the document...

5 days on average. Delivery usually takes almost 8 days. Price per item is also higher ($255).

Electrical Connector
* Primary supplier: Hulkey Fasteners
While A/P terms for all suppliers are same (30 days), this supplier charges a lower price per item ($1.25), and has the shortest delivery time (less than 5 days). Their shipments are 0.25 day early on average.
* Alternative supplier: Fast-Tie Aerospace
Price per item is as low as $ 1.25, this supplier’s delivery takes 5 days and shipments are usually on time.

* Primary supplier: Durrable Products
Offering the longest A/P term (45 days), this supplier also charges the lower price per item ($3.65), and has the shortest delivery time. On average, their shipments are 0.25 day late.
* Alternative supplier: Pylon Accessories
Even though this supplier only provides an A/P term of 15 days, price per item is relatively low ($ 3.75). Shipments are usually 2.25 days late.

Hatch Decal
* Primary supplier: Hulkey Fasteners
While A/P term and delivery time for all suppliers are same (30 days, 6-day on time delivery), this supplier charges a lower price per item of $0.75.
* Alternative supplier: Manley Valve
With the same delivery time, this supplier charges $0.85 per item.

Machined Valve
* Primary supplier: Manley Valve
Even though this supplier charges a higher price of $655 per piece, their shipments usually take only 7 days to deliver (1 day early on average). A/P term is 30 days.
* Alternative supplier: Steelpin Inc.
Even though this supplier only provides an A/P term of 15 days, price per item is relatively low ($ 3.75). Shipments are usually 2.25 days late.

* Primary supplier: Fast-Tie Aerospace
Offering the lowest price per item ($2.45) and the longest A/P term (30 days), this supplier has the best delivery record compared to other suppliers. Their shipments are only late for 0.6 day on average. Increasing order from this supplier is recommended.

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