Zumwald Case Study

May 13th, 2015
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Zumwald produces and sells arrange of medical diagnostic imaging systems,biomedical test equipment and instrument. The company has 6 dimensions . The case mainly deals with

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Zumwald Case StudyZumwaldCaseStudyZumwald produces and sells a range of medical diagnostic imaging systems, biomedical testequipment and instrumentation. The company has 6 divisions. The case mainly deals withthree of its divisions namely: Imaging Systems Division (ISD), Heidelberg division and ECD(Electronic Components division). In 2001, ISD designed a new ultrasound imaging systemknows as the X73. Heidelberg division and two outside companies were asked to bid for thedisplay needed for the production of the X73. Following were the prices quoted by all 3 ofthem:Heidelberg140,000;BogardusNV120,500;DisplayTechnologies100,500.The tension arose when Cornad (ISDs MD) decided to buy display screen from DisplayTechnologiesPlcinsteadofinternaldivisionHeidelberg.Aswedidintheclass,toanalyzethesituationweneedtocalculatewhichofthesourcingdecisionisbestintheinterestofindividualdivisionsandoverallZumwald.IfwelookattheproblemintheinterestofZumwaldasawhole(Allpricesin

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