Supply Chain Risks for Manufacturing Startups: A Guide

Abstract

MYOB Midterm PUT YOUR NAME HERE March 1st, 2022 ANSWER ALL THREE! Question #1: You have just started your very own manufacturing company in the United States with a team of four other people who all invested their money into your entrepreneurial venture. The very first thing you need to do is to make a deal with a supplier who can provide you with the materials required to put together your product. Your uncle found out about your venture and got very excited because his best friend actually has a business of his own that can easily provide you with the supplies that you require. He plans a meeting together for you and your uncle’s friend to meet up. You both discuss a 3 year long deal that will provide you with all of the materials for a set price of $50 total to create your product. He mentioned that he can start shipping materials over as soon as next week. After the meeting you go back to your investors with this information and everyone is very excited that you have done a great job with this deal. After a week or so, you realize you have not heard back from your uncle’s friend and reach out to him and he discusses how the total price per item will be $70. You mention the conversation that you had a week ago where it was $50 per item. He does not recall this conversation the same way. You later find out that he started selling the same materials to another person for $70 per item. What type of information occurred within this situation? What is something that you could have done to avoid moral hazard and a situation like this? What do you think your next step would be to make...