Similar Case

You are the project manager in a sporting goods company that produces a variety of sporting apparel and equipment. You have most recently been working on the design and production of a line of new basketball shoes. In the recent past you have done a good job of staying on target with shipping dates, but some of your expenses have begun to creep up above your initial estimates made.

As you are nearing the completion of the line of shoes, the only shoe that remains to be developed and produced and shipped is the flagship shoe of the line-up which is endorsed by a high-profile athlete. As you near completion of the design and begin the final preparations to produce the shoe, your leather supplier for the shoe goes bankrupt, and will not be able to provide with this essential part. This particular supplier was able to provide the leather needed to make the shoe at 25% less than the other suppliers.

You know that your boss will be upset because the retail stores who have agreed to purchase the lots of shoes will not want to pay higher prices for the shoe in order to off-set the new higher cost of producing it.

Deliverables: Provide an Executive Summary explaining two possible solutions to this problem, and an explanation as to how you can avoid such a problem in the future.