Case: TEMKO Earthmovers
What could be inferred about the supplier market conditions from the response for the request for quote? How would the supplier market conditions influence the decision to expand outsourcing policy?
Discuss and define the difference between single sourcing and sole sourcing in regard to the relationship between TEMKO and ACE Manufacturing. Include an evaluation of ACE Manufacturing’s requests and what could be inferred from them.
According to ACE Manufacturing, what would the resulting cost reduction from outsourcing to ACE Manufacturing be? Discuss the probable sources of this cost reduction. What would be the consequence of exploiting these sources to TEMKO and ACE Manufacturing?