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TONA Foundry

Laseter, Timothy M. ; Byme, Silas ; Swerdlow, Dorian

Reference: DARDEN-OM-1348-E
Number of pages: 4
Publication Date: Dec 9, 2008
Fecha de edición: Feb 24, 2014
Source: Darden University of Virginia (USA)
Type of Document: Case
Industry Setting: Manufacturing

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Description

This case and “DOSA Motor Manufacturing” (UVA-OM-1349) provide data for the parties in a negotiation exercise. DOSA is seeking to buy a die-cast aluminum housing for a new motor design and has initiated negotiations with TONA Foundry, the incumbent supplier, for half of the housing in the current design. The new design will reduce some costs according to a cost model developed by TONA, and there are several potential additional opportunities for collaboration in the negotiation. The cost models developed by DOSA, however, do not match those developed by TONA.

Keywords

cost modeling Negotiation Operations management Purchasing supply-chain management