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Essay

Cumberland Metal Industries

Essay specific features

 

Issue:

Business

 

Written by:

Stephen W

 

Date added:

August 1, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 624

 

Was viewed:

9520 times

 

Rating of current essay:

 
Essay content:

Purchasing had no experience with this item. As a result, CMI invented the “L Formula,” based on the Purchasing agents name who would give the pricing estimates to CMI based on elements of cost and renegotiated in their favor. CMI established the set volumes with both Alpha and Beta, but stipulated that any change of +/- 10% would necessitate price change...
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Beta was using the copper wire which was a lot more expensive than the stainless steal wire that Alpha was using. In 1975, CMI and Beta switched to stainless steal wire and saved $12.70 per pound on wire. ($15 per pound – $2.30 per pound). 2. In 1973 and 1974, there were shortages of copper-flashed nickel and stainless steel...
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