Business Case Studies & Business Publications

Dayton Foundry

Frey, Sherwood C. ...

Case

Dayton Foundry

Frey, Sherwood C. Jr.

QA-0788 | Published April 30, 2012 | 10 pages Case

Collection: Darden School of Business

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This case and its companion case, "TMC: Hydra Division" (UVA-QA-0787), are a supply-chain negotiation for which there is a narrow zone of potential agreement. Locating outcomes in that zone is challenging due to differences in raw material costs (real and perceived), potentially extreme opening offers, lack of commitment to do a deal, and different interpretations of history. The difference in raw material costs can provide an opportunity for mutually beneficial agreements to be reached. The cases are updated versions of "Akron Foundry" (UVA-QA-0398) and "RMC: Hydra Division" (UVA-QA-0399); the contract is for December 2011 and the aluminum price data are for 2010 and 2011.