Financial Analysis: Vendor Comparison
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Problem2:
Using all the information below, please present an award option you feel is beneficial to the client.
Scenario: Company A currently buys CDs from many Vendors at various rates per pack. They do not have guaranteed orders with any vendors, and are looking to make consolidated order(s) and reduce overall price. The company knows it will purchase 100 packs of CDs in the next year. The Vendors have given prices by volume. Your Award Scenario can be any combination of vendors and volumes.
Additional Information: Current price for one pack of CDs and last year's volume of CDs purchased, by Vendor
**Note: No calculations are required to come up with an Award Scenario, however you may feel free to do any additional calculations that you feel will help in your recommendation
Price per Pack of CDs, based on Volume Current Price Previous Volume
10 Packs 25 Packs 50 Packs 75 Packs 100 Packs
Vendor 1 $12.00 $12.00 $11.00 $11.00 $10.50 $12.00 75
Vendor 2 $9.00 $8.00 $7.00 $6.00 $5.00 $10.00 15
Vendor 3 $6.00 $6.00 $5.50 $5.00 $4.50 $6.00 0
Vendor 4 $13.00 $12.00 $10.50 $10.50 $10.00 $15.00 10
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Solution Summary
This solution shows step-by-step comparison between the four vendors and determines which vendor the company should award based on the cheapest available price.
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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