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407 ETR Highway Extension Material Procurement

Solution Id Length Case Author Case Publisher
2519 366 Words (3 Pages) Peter C. Bell, Carlos Planelles, Liana Rintoul, Christoff Boshoff Ivey Publishing : 9B16E038
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The phase 2 of the 407 ETR Highway expansion, which was supposed to be completed right after the completion of phase 1, was plagued with complications owing to poor procurement department management and indecisiveness in selecting vendors for the project grant.

Following questions are answered in this case study solution:

  1. Identify the problem with current material procurement.

  2. What is the optimal solution, which needs accounting calculation to support.

Case Study Questions Answers

The whole project was to be constructed across a 30-kilometer region, and the managers in charge of the procurement department computed the transportation costs for the granular material supply per kilometer of the construction site. For the sake of ease and practicality, the project was separated into six geographical regions due to the large area covered by phase 2 construction and a large number of subcontractors involved (Rintoul, Boshoff, & Planelles, 2018). In order to complete the project, the procurement team issued a bidding order, and almost seven vendors applied to participate in the bidding, each proposing a different value at a different need.

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