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TED BARTON
Ted Barton had become purchasing manager for the City of Cranston after having worked in private industry as a supply manager for several decades. He had been selected because the city's administrators wished to integrate sup¬ply better into the overall decision processes and to help search for better value for the taxpayer's dollars. Shortly
Ted Barton wondered whether any of the metrics he had recently developed were relevant for his decision on whether to extend the current mineral aggregates contract.
Since a significant number of existing city contracts were also of the multiyear, extendable type, he believed his actions on the aggregate contract might have a bearing on how to deal with other requirements. Having only one week left, he wondered what action to take.
EXHIBIT 2 City of Gnoston Prim Index for a 128-Item Basket of City Requirements
Year 3 Years
Ago
2 Years Ago
1 Year Ago
Current Year
Q-1 Q-2 Q-3
Cost of supplies (basket of goods) 100.00
.9199
.9446
.9477 .9410 .9614
312 Purchasing and Supply Management
EXHIBIT 3 Selected List of Key Cost Indicators
Key Indicators 3 Years 2 Years
1 Year
Q-1
Q-2 Q-3
Ago Ago
Business prime rate (%) 7.000 6.875
4.250
4.750
5.00 5.00
CP1 111.4 114.7
116.2
121.9
122.0 122.2
Fats & oils 161.82 165.38
194.44
218.99
221.02 236.98
Raw industrials 258.06 235.55
231.72
258.69
260.01 269.91
Textiles 236.39 230.50
221.41
234.29
241.01 239.83
Diesel fuel 50.36 52.56
54.34
65.04
56.41 58.69
Coarse road salt 57.28 52.91
52.91
52.91 52.91
Natural gas 4.50 6.08
3.82
6.22
6.00 5.96
Copper (055 per ton) 1788.00 1578.00
1559.00
1663.00
1641.00 1753.00
Metals subindex 236.06 193.55
178.92
201.50
207.09 218.15
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