Precision Worldwide Xanadu Case

Precision Worldwide, Inc. Based on new competition of replacement parts in the French market, PWI German plant world(a) Manager, Hans Thorborg, must(prenominal) decide how to react to the situation based on the training he has. An other(a) company has begun to distribute high(prenominal) quality pliant sound in France to replace the nerve peal that PWI curtly manufactures and distributes to multiple countries. The price of production the credit card elude is $279.65 per hundred go versus $1107.90 per hundred blade peal. PWI give the give the gate begin to distribute elastic go to customers by mid-September, however, they shortly have about $390,000 of trade name inventory that cannot be grapple or scrapped. At a meeting, the sales manager suggested they discharge the remaining inventory once the plastic rings were assignd. Thorborg estimated the conjure of the remaining steel inventory to be $110,900 and was unsure of discarding overlarge invento ry of this size. It was decided that PWI will distribute the plastic rings only in the French market where its human beings offered by competitors and continue to distribute steel rings in all other countries. The concern is that consumers who atomic number 18 only be offered steel rings will try that PWI is offering higher quality plastic rings to other consumers, effectively smart PWIs bottom line.

Thorborg also met with a manager from the foster company of PWI, Patrick Corrigan, and Corrigan suggested that if the steel material could not be sold, it was to be used to continue to produce steel rings. T he options for Thorborg to consider are: 1.! Produce steel rings only until plastic rings are available in mid-September and then produce plastic rings exclusively. There would be an excess of 15,100 perfect steel rings left over. 2.Produce and distribute steel rings to all other customers until the steel inventory was gone, risking alienating these customers if/when they rat PWI was distributing plastic rings to France. After weighing the risks of...If you want to snap for a full essay, order it on our website: OrderCustomPaper.com

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