purchasing and supply management

Case 5-2 Dorman Printing Inc.

Dorman Printing Inc. is a small printing firm with 43 employees, produced tag labels for the food packaging industry. Alex Szabo, the purchasing manager recently received a call from Print Shop Manager (Production Department) complaining on the quality of ink that was purchased 1 week ago from Mareden Ltd. Mareden Ltd is a new supplier of Dorman as it emphasizes in providing good quality of ink and offering a competitive price. The offered price was 5% lower that the recent supplier of Dorman.

The major problem is that Alex Szabo would like to continue dealing with Mareden Ltd., so that the price of materials will be lower and gain a competitive edge. On the other hand, the ink from them was not satisfying production department as it dries slowly and causing a delay in production.

Refer to the case, apparently there is just a little problem on the supplied ink, the ink can be used as usual, but it just dried slowly. Dorman firstly has to ...