Max Ltd runs a factory requiring around 10,000 tons of steel annually. The company invited tenders “for the supply during the coming 12 months of Grade 1 steel, not exceeding 10,000 tons in total, delivery to be made as and when demanded by Max Ltd.” Steely Ltd tendered at the price of 400 per ton ad Max replied: “I accept your tender.” Max Ltd ordered 1,000 tons of steel which was supplied by Steely Ltd without delay and later placed a further order with Steely Ltd for 1,000 tons. This second order coincided with a national steelworkers’ strike and, as a result, the market price rose to 600 dollar per ton. Steely Ltd seeks your advice concerning the obligation to deliver the second order and how the company can safeguard its position in the future if the price of steel remains higher than the price tendered. Advise Steel Ltd.

Max Ltd runs a factory requiring around 10,000 tons of steel annually. The company invited tenders “for the supply during the coming 12 months of Grade 1 steel, not exceeding 10,000 tons in total, delivery to be made as and when demanded by Max Ltd.” Steely Ltd tendered at the price of 400 per ton ad Max replied: “I accept your tender.” Max Ltd ordered 1,000 tons of steel which was supplied by Steely Ltd without delay and later placed a further order with Steely Ltd for 1,000 tons. This second order coincided with a national steelworkers’ strike and, as a result, the market price rose to 600 dollar per ton. Steely Ltd seeks your advice concerning the obligation to deliver the second order and how the company can safeguard its position in the future if the price of steel remains higher than the price tendered. Advise Steel Ltd.

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 5.2SB

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When SS Electroplating Company started the electroplating operations in a residential location in Bengaluru, it received a notice from the pollution Control Board to install the effluent treatment plant within 15 days, failing which they would seal the plant. The Director of the company collected the information that it would cost about 10,00,000 to buy an effluent treatment plant, an area of about 600 sq.feet to install it over a period of 2-3 months, & running cost of about 40,000 per month for the purchase of material like costic soda & others. The effluent contained nickel, synide, cromium, cadminum & zinc, which were to be treated separately using different chemicals. After effluent liquid of about 800 litres per day was treated, the sludge was to be dried, packed, stored & dumped in a government notified place. The entire process would not only cost substantial amount, but also would need additional area of about 600-700 sq. feet The company gathered information…
Ali is the manager of a well reputed organization. He is assigned to auction some assets of the firm. Instead of organizing an auction Ali compiles a list of items and puts an advertisement on the paper stating that anyone who is willing to purchase the said articles for Rs. 1 Lac can contact him directly by 15th April 2021 through email only. Ahmed saw the advertisement and emailed Ali on 12th April asking for pictures of the items or if it was possible for him to view the items. Ali provided the pictures. Ahmed then emailed Ali that he is willing to purchase the said articles for Rs. 90 thousand and wrote that if Ali did not reply he will assume that Ali has accepted the offer. On 14th April at 3 pm, Saad emailed Ali and said the following, “I will purchase the listed articles.” On 14th April at 4:30 pm, Khan called Ali and brokered a deal to purchase the articles. Answer the following questions Advise Saad if he can purse Ali to obtain the articles
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The management of Sharp Bank Ltd has received a tender offer fromUltimate Bank for the acquisition of Sharp Bank. Sharpe Bank intends to devisedefenses that would make it more difficult or costly for Ultimate Bank to takethem over.a) How might such defenses affect the firm’s agency problems?
Mr. Williams, the leather handbag buyer for an upscale menswear specialty retailer located in San Francisco, decides to review his vendor analysis report before making his forthcoming season’s purchases. The report shows that there are three relatively strong and three relatively weak suppliers among the top six resources in relation to the gross margin each generated. Mr.Williams realizes that some important aspects of his job as a buyer are to negotiate trade discounts, quantity discounts, cash discounts, dating, and transportation charges. Because any and/or all of these factors can increase the essential gross margin figure, he examines copies of past orders to determine the terms of sale on previous purchases. He discovers that some suppliers granted all his requests pertaining to discount and dating elements, certain vendors negotiated these factors only after an initial order was placed, and a considerable number allowed only the absolute minimum discount that prevailed in the…
Generally, Contractors submit Tenders based on the Instructions to Tender (ITT) for the Client’s consideration and acceptance. In the same manner, shoppers go to supermarkets to shop. A shopper picks a double fridge on display. The price tag on the television is GHS 15,400.00. He walks to the counter and requests for a discount thereafter makes payment. i. Explains what constitutes offer in the scenario. ii. Explains what constitutes acceptance in the scenario. iii. Discuss when a Contract is formed between the parties?
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Did the company have the correct quantity of goods and services Pay for them?
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