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Cumberland Metal Industries

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Title: Cumberland Metal Industries

Essay Details:

Subject: Business

Author: Nancy R

Date: March 19, 2014

Level:

Grade: A

Length: 3 / 624

Essay text:

Purchasing had no experience with this item. As a result, CMI invented the “L Formula,” based on the Purchasing agents name who would give the pricing estimates to CMI based on elements of cost and renegotiated in their favor. CMI established the set volumes with both Alpha and Beta, but stipulated that any change of +/- 10% would necessitate price change. Prices for metals during this period were unstable. Beta was using the copper wire which was a lot more expensive than the stainless steal wire that Alpha was using. In 1975, CMI and Beta switched to stainless steal wire and saved $12.70 per pound on wire...

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