You decide to contract with the second supplier (B), saving $30 per seat. Does this decision have…

 
   

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Purchase Manager You are evaluating two potential suppliers of seats for the manufacturing of motorcycles.

One supplier (A) quotes a $145 price per seat and ensures 100% quality standards and on-time delivery. The second supplier (B) quotes a $115 price per seat but does not give any written assurances on quality or delivery. You decide to contract with the second supplier (B), saving $30 per seat. Does this decision have opportunity costs?