Stryker Corporation Essay

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Styker Corporation Case Analysis Created By: Daniel Jordan Daniel Franco I. Introduction The purpose of this memo is to disclose an evaluation comparing three different options that Stryker Corporation is currently contemplating about to solve a current issue. As of right know, Stryker Corporation is purchasing printed circuit boards (PCBs) from a small number of contracting manufacturers. This is a problem because at this time and in the future, PCBs are showing a high demand. According to the case study, “business anticipated spending more than $10 million each year on PCBs”. As a result, Stryker would like to become a competitive and well establish corporation in this market. Furthermore to solve this problem, the manufacturing managers have three options to improving the situation. 1. Maintain the current basic sourcing policy for PCBs, but with important modifications 2. Establishing a partnership with a supplier, one of the current contract manufacturers 3. Manufacture its own PCBs in its own facility near company headquarters II. Comparison For option one, the benefits for Stryker Corporation would be the low cost over time, and also this option would protect against future disruptions by acquiring stocks of key and instituting dual sourcing of all electronic assemblies. In addition, by not manufacturing its own PCBs, it would allow the company to save $-6,187,178. This money could be used to protect the company against risk and or unexpected events. In addition to the risk of option one, this option has instability in product quality, delivery and responsiveness. Compared to option two, the quality of the PCBs can improve by increasing business with a supplier and have partnership benefits. But the risk are the possibility of

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