Should the appliance maker add a second compressor supplier?
New to this industry?Start with its one-minute summary: Retail
The prompt
The appliance maker buys 240,000 compressors a year from one supplier at INR 4,000 each. A second supplier would take 30 percent of the volume at INR 4,200 each, and qualifying and managing it costs INR 0.6 crore a year. The team estimates a 10 percent chance each year that the main supplier stops for two months; each lost washing machine costs INR 5,000 of contribution, and the plant makes 20,000 machines a month. With a second supplier, half of the lost output could be saved. The main supplier has also offered a 2 percent price cut on its remaining volume if a second supplier is added. Is dual sourcing worth it?
Practice with a partner
1. Send the interviewer link to a friend. They read the case aloud and hold the answers.
2. You open the candidate view: you see only the prompt, a timer and a notes box.
3. Speak the case out loud. Your partner shares data when you ask, then scores you with the rubric.
Interviewer view
For the person running the case
Candidate view
For the person answering the case
Clarifying questions, with the interviewer's answers
My notes on this case
0 of 5,000 characters. Saves automatically.