Platinum Box

Platinum Box Case Study

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Prepared by: XXXXXXX

Executive Summary

Platinum Box has become known for its superior graphic design in a very competitive printing industry and needs to purchase five more presses to meet its expansion goals. My decision is to recommend the presses by bought from Pnutype based on my assessment of costs, quality, and service. After performing a costs analysis, and developing a matrix to compare the options, Pnutype is the best choice to supply the new presses to Platinum Box. Pnutype’s suitability as a possible long-term vendor is evident after analyzing the data supplied by them and the financial data that was acquired by the team. Pnutype has the lowest overall costs, longest warranty, and an extremely high quality output which makes it the best press for Platinum Box.

Key Assumptions

1. Financing can be a combination of Credit Union as well as private

through the supplier of the printing press.

2. Operating costs will remain static through the life of the machine.

3. All financial information supplied is the best estimate from all sources.

Statement of Issues

The most important factor in making a decision on which press to purchase is cost. Jim has been very specific on controlling costs. There is the initial costs which include specification determination, sourcing, and analysis which are applicable to all three press suppliers. Servicing costs are the estimated average yearly maintenance costs to service the machines. Yearly Costs are the principal and interest of the selected financing terms. Scrap Value is a credit we would receive based on the remaining value of the materials. Removal is the cost to decommission the unit at end of life. The operating costs are based on the estimated 250,000,000 boxes which will be made yearly at 2 boxes per sheet multiplied by the operating cost per sheet. Total Costs everything listed above.

The second thing to take into consideration is the...