Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Case
-
Reference no. 504-137-1
Subject category: Marketing
Authors: Markus Christen
Published by: INSEAD
Originally published in: 2004
Version: 10.2004

Abstract

Shiva Plastics Corp has been invited to submit bids for the production of a number of different injection moulding parts. In the past, the company used a simple 'cost-plus' pricing strategy based on the raw material cost of a part to determine its bids. However, overall manufacturing costs are uncertain and this pricing strategy has resulted in unexpected losses. With a more sophisticated cost estimation approach the company hopes to do better.

About

Abstract

Shiva Plastics Corp has been invited to submit bids for the production of a number of different injection moulding parts. In the past, the company used a simple 'cost-plus' pricing strategy based on the raw material cost of a part to determine its bids. However, overall manufacturing costs are uncertain and this pricing strategy has resulted in unexpected losses. With a more sophisticated cost estimation approach the company hopes to do better.

Settings


Related