Muenster Pump Case Study

Major Facts: A. Muenster Pump Company has manufactured high-quality agricultural tendernesss for over 40 years. B. The firms only plant is in the small Midwestern city of Muenster and is the citys largest employer C. sorrel Dorf, president of the firm, is the grandson of Emil Dorf, the founder. D. curtsey along with key personnel exit in or near the city of Muenster and cordial dealing exist between the firm and the city officials E. The firm has ceaselessly been as self-sufficient as possible. Shortly after stage setting up the business, Emil Dorf established a foundry to cast pump housings and related items. F. Terri (Bobs cousin) is the purchasing manager for Muenster. Bob consolidated buying functions previously performed by himself and other members. Materials address has come down from 60% of the cost of sales to 50% in two years since Terri took responsibility for purchasing. G. Terri was contacted by a rep from Union metalworks. The rep claimed that new developments in molding pouring allowed his firm to offer extremely attractive prices. H. Terri put across a price on the L-1012 case housing (Muensters most popular size).

The L-1012 represents 60% of Muensters demand for molding housing and the pump that incorporated the L-1012 is sold to distributors for $500. Within a week Terri received a letter from Union Foundry quoting a price of $90 F.O.B Muenster. Delivery was promised in one hundred twenty days after know of first order. Thereafter, delivery would be made in 60 days after receipt of an order. Minimum orders were established as 100 units. Terry as well as received quotes from two other foundries and received quotes of $94 and $98 F.O.B Muenster. I. Ned Dorf (Terris uncle) is not enthusiastic about Terris efforts. He feels that the quality of the in-house case housings is superior that that of the competitors and quality is an crucial component of the companys success. Ned feels that in-house production of the L-1012 case housing... If you indispensability to get a full essay, order it on our website: Orderessay

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