MAJOR FACTS:
With the death of Thurston Howell it left Barney Rubble in charge of the purchasing of supplies for Pacific Hospital and their subsidiaries. With this being an important responsibility, Mr. Rubble needs to make sure that he is making the right decisions regarding the suppliers of X-ray film. His main responsibility is to make sure that he is getting the best price for quality X-Ray film. Another major fact is that Kodak has been the sole supplier for Pacific Healthcare for a long time and this was due to Mr. Howell and the agreement in place. As the Director of Radiology it was with in his power to make this decision. The last major fact is that Kodak as part of their pricing …show more content…
Other options that can be explored is that Mr. Rubble can go with either Kodak or Agfa. They are offering cheaper prices per sheet and this can be an advantage and he cannot go wrong as long as they stay consistent with their pricing. The only way that this would be a disadvantage is if Mr. Rubble cannot get the same deal with either DuPont or Agfa that Mr. Howell had secured with Kodak. Kodak was more expensive, but when you add in the other options that Kodak was willing to offer it leveled out the expenses and this could be an advantage.
c. As an alternative option Mr. Rubble could open up the contract for bid. In the bidding statement he could include all the services that are presently being offered by Kodak. This includes maintenance, equipment and service at the most affordable price. The lowest bid with all the stipulations will get the contract.
d. Advantages speak for themselves. The winner of the contract secures a contract for the length of time specified. The disadvantage could be the length of time that it takes for the bidding process to be completed. In addition it would not have the input of Mr. Howell who has been in charge for some time and has had a reputation.
CHOICE AND