Procurement at Betapharm Corp.

(A)
Harvard Business School Case #105-030
Case Software XLS-450

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Exhibit 1 Key Financial Statistics for Betapharm (in millions)

2003 2002

Sales
Pharmaceuticals €29,726.84 €27,045.00
Consumer health care 5,336.97 4,841.06
Total sales 35,063.80 31,886.06

Cost of sales 7,435.80 6,932.54

Sales, general, and administration 12,400.08 12,089.12

Research and development 4,562.17 4,357.25

Trading profit 10,673.94 8,514.67

Current assets 22,534.45 17,308.56

Fixed assets 20,259.59 18,642.84

Source: Adapted from 2003 Annual Report.

Exhibit 4 Example of Bid Configurations for the Same Product

Supplier 1 Supplier 2

Pricing $100 per unit $125 for first 1,000 units

$100 for 1,000 to 5,000 units
$85 for over 5,000 units

Delivery Full order by February 1 First batch by January 1

Second batch by February 2
Final delivery by March 15
May cancel 20 days before delivery

Product substitution No substitutes available May substitute with formulation 3.26

Source: Case authors.

Exhibit 5 Sealed Bids for Malic Acid for 650 Kilograms

Supplier Sealed Bid (€)

Chun Wu €59
Liou Laboratories 175
Chemlab Pharmaceuticals 286
Zhang Huang 219
Yu Sheng 217

Source: Adapted from company records.