Executive Summary
Pieles de la Garriga is a medium sized and family owned fraternity, specialised in leather pelt manufacturing. At the end of fearful 2001, one year and a half after first appearance a new line of products targeted at the fur cut back and accessory market, Pedro Saez, Manager of the lapin pelt parting and news of the General Manager José Saez, has to take an important conclusion.
The companys main customer, Comerpiel, which accounts for 60% of the rabbit pelts division gross revenue, launched a request for proposal. If Pieles de la Garriga decides to bid, the truehearted will have to manufacture 20,000 large bands and 30,000 small bands of rabbit pelts by the end of the year, according to a strict planning. The company has the possibility to bid for the whole request or plainly for one part, either the small or the large bands stream.
If Pieles de la Garriga bids for the contract, it has to buy a new production machine to pass around the fur the particular look and type of finish Comerpiel expects. The investment funds is sound : 60,000 Euros, above all if we consider that the machine is unconvincing to be usable for any other order.
However, the expectations are deserving paying attention to the request. Sales could reach 1.
23 million Euros, heart and soul a 50% increase in total sales for the rabbit pelt fur garment and accessory division led by Pedro Saez.
What the relevant criteria are and how they could help Pedro Saez study the issue in depth and take the adequate decision can be summarized as follows :
- First of all, the current companys make capacity. Is the firm able to manufacture the required quantity and visualise the deadlines ? We will analyse this issue and show that Pieles de la Garriga will...
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