1)Why should Whirlpool Corporation be interested in cost modeling? How can they use supplier cost models in procurement?

2) Consider Exhibit 2 in the Whirlpool Corporation Global Procurement Case (available in your readings) and address the following bullet points.

• What's the key point in case Exhibit 2? Can this framework apply to your organization?
• The context of the case is the purchase of manufactured products. Do the ideas around cost modeling fit if you were sourcing services for your company?
• Thinking of the range of services a company might source from outside supplierssimple things like custodial or security services, versus complex services like legal or consultinghow would the applicability of cost modeling vary?

3) Analyze the compressor data that is provided in the case (also made available in the Microsoft Excel file uploaded below) to determine which drivers are most important? (Note: To answer this question you can use one or more of the following techniques using Microsoft Excel or any other statistical package: Pivot table, correlation, graphing relationship between variables, regression.)

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1 Whirlpool Corporation should be interested in cost modeling for several reasons Cost modeling allows companies to analyze and understand the cost st... View the full answer