Hannah Inc. (Hannah) is interested in changing suppliers for its casted Bronze components (Items 001-034 below). Two potential suppliers (Cotton and Peanut) have been identified and sent a request for proposal (RFP). Both Cotton and Peanut have submitted their completed RFPs (Below) and are waiting to hear back from Hannah.

1. What is the savings opportunity being offered by each supplier?

A. Peanut

B. Cotton

2. Which item has the highest potential savings and which prospective supplier is the quote from?

3. After reviewing all of the available data, what recommendation would you give to the sourcing team? Please explain.

Below is current supplier data

                                      

Incumbent Supplier	Item Number	Plant Location	Volume	Price/Unit
					ABC Co.	001	Mexico City, Mexico	3,417,000	0.21010
ABC Co.	002	Mexico City, Mexico	6,825,600	0.28200
ABC Co.	003	Mexico City, Mexico	7,497,000	0.21630
ABC Co.	004	Mexico City, Mexico	15,517,000	0.08070
ABC Co.	005	Dallas, Texas	16,860,043	0.06198
ABC Co.	006	Mexico City, Mexico	15,336,000	0.06560
ABC Co.	007	Mexico City, Mexico	3,269,400	0.28200
ABC Co.	008	Mexico City, Mexico	3,226,629	0.23200
ABC Co.	009	Mexico City, Mexico	9,880,000	0.09590
ABC Co.	010	Dallas, Texas	11,501,237	0.04548
ABC Co.	011	Dallas, Texas	58,501,369	0.00372
ABC Co.	012	Dallas, Texas	10,206,964	0.02433
ABC Co.	013	Dallas, Texas	15,960,405	0.03224
ABC Co.	014	Mexico City, Mexico	20,979,000	0.01910
ABC Co.	015	Mexico City, Mexico	9,180,000	0.03410
ABC Co.	016	Mexico City, Mexico	14,190,000	0.01930
ABC Co.	017	Dallas, Texas	60,000	0.37438
ABC Co.	018	Mexico City, Mexico	766,500	0.09690
ABC Co.	019	Mexico City, Mexico	195,000	0.41040
ABC Co.	020	Mexico City, Mexico	210,000	0.41040
ABC Co.	021	Dallas, Texas	849,080	0.12750
ABC Co.	022	Dallas, Texas	1,661,835	0.12735
ABC Co.	023	Mexico City, Mexico	665,000	0.08250
ABC Co.	024	Dallas, Texas	5,226,609	0.03118
ABC Co.	025	Mexico City, Mexico	158,690	0.29980
ABC Co.	026	Mexico City, Mexico	985,000	0.03750
ABC Co.	027	Dallas, Texas	2,313,700	0.00416
ABC Co.	028	Mexico City, Mexico	64,800	0.44600
ABC Co.	029	Mexico City, Mexico	240,000	0.09240
ABC Co.	030	Mexico City, Mexico	800,000	0.02680
ABC Co.	031	McMinville, Tenessee	2,435	9.73310
ABC Co.	032	Mexico City, Mexico	143,065	0.03950
ABC Co.	033	Mexico City, Mexico	120,000	0.03830
ABC Co.	034	Mexico City, Mexico	102,967	0.02410

Below is Cotton data

Cotton
Location: China
Payment Terms: 1% 30, Net 60
Lead Time: 45 days

Item #	Price ($USD)
001	0.219
002	0.061
003	0.270
004	0.097
005	0.043
006	0.053
007	0.265
008	0.089
009	0.090
010	0.045
011	0.001
012	0.017
013	0.136
014	0.001
015	0.062
016	0.012
017	0.533
018	0.043
019	0.800
020	0.800
021	0.207
022	0.046
023	0.079
024	0.023
025	0.301
026	0.072
027	0.022
028	0.070
029	0.140
030	0.146
031	2.275
032	0.086
033	0.016
034	0.196

Below is Peanut Data

Peanut
Location: Mexico
Payment Terms: 2% 10, Net 30
Lead Time: 15 days

Item #	Price ($USD)
001	0.198
002	0.134
003	0.496
004	0.082
005	0.023
006	0.015
007	0.048
008	0.137
009	0.114
010	0.016
011	0.010
012	0.003
013	0.011
014	0.052
015	0.060
016	0.054
017	0.013
018	0.024
019	0.422
020	0.042
021	0.028
022	0.027
023	0.161
024	0.010
025	0.219
026	0.006
027	0.133
028	0.175
029	0.150
030	0.063
031	1.647
032	0.040
033	0.034
034	0.000

what info is missing all given information has been presented.

Answer rating: 100% (QA)

1 What is the savings opportunity being offered by each supplier A Cotton offers saving of 67837144 B Peanut offers saving of 83610172 2 Which item has the highest potential savings and which prospect... View the full answer