CASE EVALUATION INSTRUCTIONS

On the following page, fill out each cell based on the

information in the case.
1. To choose which supplier is the best decision, conduct a
vendor evaluation and quantify the qualitative factors of
each vendor. Provide a brief justificaition for why you
weighted these elements as you did, and input their
"weighted score" on the summary sheet. Then, evaluate
the different transportation options available to Wright &
Sons. Assume the NPV of these numbers has already been
calculated.
2. Evaluate how many lbs of apples each vendor can
achieve based on the given labor quantities and
productivity rates. Input this information in the summary
sheet.
3. Conduct a cost analysis. Input Wright & Sons' potential
profit margin for each vendor. Then, calculate the annual
cost of apples based on the store's annual demand and
their revenue based on the apple's average selling price.
Then, taking into account the transportation costs,
calculate the overall profit for each option.
4. Then, choose a supplier from two perspectives. First
choose the supplier whom you think that the upper
management of Wright & Sons will choose. Base this
decision on both the quantitative and the qualitative
elements outlined in the press release from the board.
Hint: Pay attention to what the board cares about and
weigh the qualitative evaluation accordingly!
Then, if your personal vendor preference differs, explain
which vendor you would choose and why. Remember to
take into account any dual sourcing strategies that may be
benefiicial to the company.
Complete all pages! (Note: Transportation amounts on Pg.
4 have been calculated for you.)

Nando & Co

Category
Organic
Water Usage
Fertilizer
Location
Labor
Waste Management
Compost
Community Engagement

Total Score
Windsor & Wein

Category
Organic
Water Usage
Fertilizer
Location
Labor
Waste Management
Compost
Community Engagement

Total Score
Southern Best

Category
Organic
Water Usage
Fertilizer
Location
Labor
Waste Management
Compost
Community Engagement

Total Score

Score

Weight
Weight
(1 ed
5 scale) Score
40
10
10
15
10
5
5
5
100

Notes

0
0
0
0
0
0
0
0
0

Score

Weight
Weight
(1 ed
5 scale) Score0
40
10
10
15
10
5
5
5
100

Notes

0
0
0
0
0
0
0
0

Score

Weight
Weight
(1 ed
5 scale) Score
40
10
10
15
10
5
5
5
100

0
0
0
0
0
0
0
0
0

Notes

Labor Utilization
Laborers

Productivity Rate Total Lbs/Year

Nando & Co.

210

78%

Windsor & Wein

170

97%

Southern Best

200

83%

E.g. If you have 100 workers with an

average productivity rate of 68%, and
every worker can pick 10 lbs of apples per
hour, then 680 lbs of apples are picked in
one hour.
Note: Assume that each worker can pick
10 lbs of apples per hour, for 40 hours per
week, and for 50 weeks per year. 10 lbs/hour

1,360,000

Transportation
In House

Out Source

# of Trucks
Capital Costs (Truck)
Ongoing Annual MRO/Truck
Employee Cost/Outsource Fees
(Salary + Benefits)
Annual Logistic Support

$60,000.00

N/A

$5,000.00

N/A

$120,000.00

N/A

$20,000.00

$150,000.00

# of Trips/week
Cost/mile

0.09 $

40.00

Avg Miles to Fresh Plus

Nando & Co

1775

Windsor & Wein

2129

Southern Best

30

% of Truck used by Apples

10%

20%

Transportation
Nando & Co.

Windsor & Wein Southern Best

In House Trans. Cost - Yr 1

$368,228.00

$374,854.88

$335,561.60

In House Trans. Cost - Yr 2 & on

$188,228.00

$194,854.88

$155,561.60

Outsource Trans. Cost

$178,400.00

$184,064.00

$150,480.00

These costs comprise the

annual logistics support and
the cost per mile of
transportation. We assume
that the apples comprise
10% of the total truck
space.

These costs comprise

capital costs of 3 truc
annual MRO/truck, em
costs, logistics suppo
cost per mile of trans
We assume that the
comprise 10 % of the
space.

These costs comprise the

ongoing annual MRO/truck,
employee costs, logistics support
and the cost per mile of
transportation. We assume that
the apples comprise 10% of the
total truck space.

These costs comprise the initial

capital costs of 3 trucks, ongoing
annual MRO/truck, employee
costs, logistics support, and the
cost per mile of transportation.
We assume that the apples
comprise 10 % of the total truck
space.

Fresh Plus Data

Average Price/lb
Annual Demand For FP
Organic Apples

2.51
3,250,000

Costs
Cost/lb
Profit Margin
Annual Apple Cost
Annual Transportation Cost
Revenue
Profit

Nando & Co.

Windsor & Wein Southern Best
$
2.40 $
2.35 $
2.48

Name:

Fill in the following

based on information
provided in the case.

Summary Sheet
Nando & Co.

Windsor & Wein

Southern Best

Transportation Evaluation
In House Trans. Cost
- Yr 1
In House Trans. Cost
- Yr 2 & on
Outsource Trans. Cost

$368,228.00

$374,854.88

$335,561.60

$188,228.00

$194,854.88

$155,561.60

$178,400.00

$184,064.00

$150,480.00

Cost Analysis
Cost/lb
Profit Margin
Annual Apple Cost
Annual
Transportation Cost
Revenue
Profit

$
$

2.145 $
0.00%
$

2.135 $
0.00%
$

2.130
0.00%
-

$
$

$
$

$
$

Production Capacity
Laborers
Productivity Rate
Total Lbs/Year

Further Vendor Evaluation

Organic

Water Usage

Fertilizer

Location

Labor

Waste Management

Compost

Community
Engagement

210
78%
-

170
97%
-

200
83%
-

Which supplier should Keith Samuels choose? Why?

Remember to take into account both short-term and longterm strategies. Does your personal choice of vendor differ
from what you think Kieth will choose? How and why? Be
prepared to discuss your answer in class.