Precision Worldwide Xanadu Case

Precision Worldwide, Inc. Based on new competition of support parts in the French market, PWI German plant world(a) Manager, Hans Thorborg, must decide how to react to the situation based on the cultivation he has. An new(prenominal) company has begun to distribute high(prenominal) quality elastic sound in France to replace the nerve peal that PWI in brief manufactures and distributes to multiple countries. The price of production the credit card send for is $279.65 per hundred go versus $1107.90 per hundred blade sound. PWI give the unclutter begin to distribute tensile ring to customers by mid-September, however, they currently have about $390,000 of make inventory that can non be deal or scrapped. At a meeting, the sales manager suggested they discard the remaining inventory once the plastic rings were upgraded. Thorborg estimated the speak to of the remaining steel inventory to be $110,900 and was unsure of discarding overlarge inventory of th is size. It was decided that PWI will distribute the plastic rings only in the French market where its man 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 run across 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. The 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 unblemished 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 s ight PWI was distributing plastic rings to F! rance. After weighing the risks of...If you want to teem for a full essay, order it on our website: OrderCustomPaper.com

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