Sabor Inc Case Summary

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Case 2-2: Sabor Inc. Situation: 1. Sabor Inc, which Ray Soles works, is now facing a potential shortage of supply of Marconil. 2. Air filtration started to as a significantly sales in Sabor Inc. Marconil is capable of filtering small particles which can be used in air filtration. 3. Marketing’s ability to forecast sales had not been impressive. 4. There are three major Marconil suppliers. The price of Marconil is increasing every year. Current situation: Bilt Chemical 20,000 pounds, $44 Warton Inc. 8,000 pounds G.K.Specialites 4,000 pounds 5. Each company warned Ray that the supply was looming and unless Ray sign a long term contract with them, they cannot guarantee the supply.…show more content…
: two year contract, 10,000 pounds each year, price provisions is same as Bilt Chemical G.K.Specialites: could be dropped any time by either party, 12.5percent of Sabor’s annual requirements, price is $56.00 for current year 6. Ray heard some rumors that one substitute for Marconil might be developed in a few years. 7. Macronil filter had to be replaced every six months, guaranteeing a continued sales volume of filter for years to come. BASIC ISSUES; 1. Purchasing for a manufacture company 2. The price, contract time, quantity 3. Supplier selection and ensure long time Marconil

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