1. Write 3–5 paragraphs on the R&D Contract Development at PNS Vignette in Chapter 15. Describe the actions you would take as June Oster and explain why. Include 3 research sources that can be from the Internet and/or other sources.

June Oster is a newly promoted supply manager at PNS who has to deal with a situation of making a decision about different proposals from different suppliers about a wireless adaptor that is a part of the personal computer that PNS intend to introduce to the consumer market. There are different aspects of the selection process of the suppliers that June has to consider.

Initially, PNS did a make or buy analysis of the wireless device. The make or break analysis is an innovative strategy which can help and organization to make a vital decision between the making of a device themselves or hiring an outer supplier for it (Veugelers & Cassiman, 1999). After this analysis, PNS decided in the favor of hiring a supplier for the wireless device for their personal computer.

June contacted 5 suppliers who might be the best suppliers to supply the equipment. Tigertronix is one of the three suppliers who have shown interest in making the supply. They have put forward a condition that they would supply the wireless device for $100 a piece if a minimum of 500,000 devices are ordered. I think that this condition is understandable as the company would need to bring about structural and operational changes to produce the product which may be a costly process. If I were, June, I would go with Tigertronix as they have been reported to have an enormous growth during the last few years according to the case study.