Problem
Canadian based manufacturing firm; HatcherCo Inc. Halifax NS
• Looking to procure a five year contract for 500,000 tonnes of mid-sulfur coal/year it needs for its furnaces.
• Canadian Coal primarily high sulfur and requires scrubbing. - Because of this they will be looking to bring coal from overseas.
• HatcherCo will be looking to keep onsite coal inventories to a minimum due to the proximity of the plant to residential properties and the environmental and political scrutiny that comes with that. Just - in - Time Inventory (JIT)
• All products manufactured by HatcherCo will be sold within Canada.
Task
Considering the 4 elements of the Epic Structure, what do you believe to be the top 2 elements needing consideration when looking at the above transaction? Give 2 to 3 reasons why you chose the elements you did.