Pages:
1 page (275 words) Double spaced

Type of paper:
Question-Answer Undergraduate (yrs. 1-2)

Discipline:
Business Studies

Title:
See paper instructions

Sources to be cited:
1

Paper format:
MLA

Paper instructions:
Apple Computer ordered 1 million watches from Supplier A in Shanghai and 1 million watches from Supplier B in Taipei, for delivery by October 15th, for in-store sales during the holiday season.Both Suppliers charged $200 per watch.Supplier A was able to deliver its 1 million watches on time, but Supplier B encountered component problems and notified Apple that it could only deliver 500,000 watches on time.Apple asked Supplier A to operate additional overtime production lines, and Supplier A was able to deliver on time an additional 300,000 watches at $225 each (the $25 per watch increase was mostly due to using air freight instead of ocean vessels to deliver on time).Apple sold out the 1.8 million watches it had available at an average retail price of $375, with an average profit of $75 per watch. In light of the reduced inventory, Apple canceled billboard promotions it had scheduled in several markets, and incurred $175,000 in cancellation fees and wasted production costs.Discuss what claims Apple can bring against Supplier B and what amount of damages it likely can recover.


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