Case | HBS Case Collection | November 2012 (Revised April 2013)

Konys, Inc.

by Deishin Lee and Tunay I. Tunca

Abstract

This case describes the sourcing policy for a consumer electronics company. The company must decide how to structure contracts with their supplier—using a purchase contract, an option contract, or combination of the two. The company can also buy from the spot market. The students use a spreadsheet model with Monte Carlo simulation to analyze the contracting options.

Keywords: supply chain; contracts; option contract; uncertainty; sourcing; supplier relationship; Risk and Uncertainty; Contracts; Supply Chain; Consumer Products Industry; Electronics Industry;

Citation:

Lee, Deishin, and Tunay I. Tunca. "Konys, Inc." Harvard Business School Case 613-065, November 2012. (Revised April 2013.)