Negotiation

Case Study 2: Dynamic Aircraft

Emily Bowers

MKTG 444: Supply Management

Statement of Problem

The supply manager for Dynamic Aircraft, Bill Marshall, must determine whether to place the order for electrical wire through a sole source, Advanced Wire, or follow the Dynamic Aircraft Company policy of dealing with more than one source that meet the governing specifications.

Background

Dynamic Aircraft Company was recently awarded a multi-billion dollar contract for a new high-performance aircraft. This project requires the use of new materials in many areas of the aircraft which includes many of the types of wire used in the electrical systems of the aircraft.

Discussion

Recommendations

DYNAMIC AIRCRAFT

The Dynamic Aircraft Company was recently awarded a multi-billion dollar contract for a new high-performance aircraft. This project required the use of new materials in many areas of the aircraft. The aircraft incorporated a state-of-the-art concept known as fly-by-wire.

Among the conventional materials no longer useful were many of the types of wire used in the electrical systems of aircraft. Fortunately, however, the electrical wire manufacturers had been brought in on the problem at an early date so that, before long, many of them could offer for sale a standard stock electrical wire capable of withstanding unusually high temperatures.

One leading electrical wire firm, Advanced Wire of Chattahoochee, Georgia, had developed a ceramic-coated wire. Other wire sources had tackled the problem in different ways. The representatives of all these companies were anxious to demonstrate their products to the engineering departments of the aircraft companies.

The engineers at the Dynamic Aircraft Company, a large airframe manufacturer, were quite favorably impressed with Advanced Wire’s ceramic-coated wire. They knew from previous experience that Advanced Wire had a reputation as a quality supplier of...