Computer industry are constantly looking to reduce costs

Assignment Help Operation Management
Reference no: EM131122418

Due to competitive pressures, firms in the computer industry are constantly looking to reduce costs. Computer manufacturers compete fiercely for contracts based on meeting the technology, quality, and price requirements of customers. Profit margins and return-on-investment targets are almost always under pressure. Dell Computer recently saw its operating margins slip to a slim 7%.

Most computer manufacturers have programs designed to improve quality and reduce the costs associated with their products. One strategy that many producers use is to contract only high-quality suppliers and develop longer-term-buyer-seller relationships. One major computer company, Porto, also initiated a program requesting suppliers to continually improve productivity, which should lead to cost reductions.

The objective of the program was to reduce purchase costs over the foreseeable future. Porto also expects its suppliers to contribute cost-saving ideas whenever possible.

The high-technology industry features high fixed costs due to large investments in plant and equipment. These companies also commit expenditures to research and development.

Porto currently has a requirement for an electronic component termed "New Prod," which is part of a recently designed product. The estimated volume requirement of New Prod is 200,000 units with additional follow-on orders likely. For the New Prod component, Porto felt there were five to eight highly competitive suppliers capable of producing the item. These suppliers are located primarily along the East and West Coasts of the United States. After a request for quote and preliminary analysis, the buyer for Porto deciced to pursue further discussions with Technotronics.

Instructions/Requirements:

Each negotiator must plan and prepare before conducting the negotiation. The group leader has information packets for the buyer and seller that provide additional information and assignments required for conducting the negotiation. Buyers and sellers can share as little or as much of the information with each other as they desire during the actual negotiation.

Your negotiation strategy should be developed prior to the negotiation session. Price is not the only variable subject to negotiation. Be creative when crafting your purchase agreement.

Reference no: EM131122418

Price maker is monopoly-firm within monopolistic competition

A price maker is a monopoly or a firm within monopolistic competition that has the power to influence the price it charges as the good it produces does not have perfect substi

How do operations managers influence potential users

What can be done to ensure that performance measurements at various levels in an organization are integrated into one system that can help managers, working at levels that r

When did the company implement the management tool

What conditions lead the company to implement to the selected topic. When did the company implement the Operations Management tool. Document results of the implementation of t

Made contributions to the judge election campaign

During a court case, it was determined that both the litigants and their attorneys had made contributions to the judge's election campaign. It was therefore ethically essentia

Formulate the linear programming model

formulate the linear programming model. solve the linear programming model on Excel. A publisher has orders for 600 copies of a certain text from San Francisco, 300 copies fro

About the importance of being very good at the strategy

Zappo’s has become very successful by positioning themselves as a company with first class customer service. What did you learn from watching the video about the importance of

How are sole proprietorships taxed

How are sole proprietorships taxed? How are partnerships taxed, and is there any difference between taxing the general vs. limited partnership? How is a corporation taxed, and

Extent of liabilities of partners in general partnership

What is the extent of the liabilities of partners in a general partnership? How does the limited partnership differ from the general partnership? What actions, if any, should

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd