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Konys, Inc. (TN)

By: Deishin Lee and Tunay Tunca
  • Format:Print
  • | Language:English
  • | Pages:15
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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

Contracts; Option Contract; Uncertainty; Sourcing; Supplier Relationship; Supply Chain

Citation

Lee, Deishin, and Tunay Tunca. "Konys, Inc. (TN)." Harvard Business School Teaching Note 613-094, April 2013.

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