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A jewellery retailer wants to expand its range of suppliers.It is keen to negotiate new contracts with exciting producerswho will give it excellent value and reliable service.BackgroundFashion House Inc., based in Miami, Florida,owns a chain of stores selling high-classjewellery products. Its best-selling lines are topof-the-rangenecklaces, bracelets and earrings,made by overseas manufacturers who haveoutstanding design capability. Its profit marginon most of these products is at least80 per cent.Today is 1 October. The buying department ofFashion House wishes to purchase 5,000necklaces and bracelets and 3,000earrings. Delivery of the items, ifpossible, should be by 15 November,in time for the Christmas buying season.The company is confident of selling 3,000necklaces and bracelets and 2,000 earringsand the remaining items should sell if prices arecompetitive and the demand is high. FashionHouse has a temporary cashflow problem, so itwishes to pay for the goods as late as possible.Members of the buying department are nowvisiting companies in India, Peru and Chile.They are looking for a reliable supplier withwhom they can build a long-term relationship.They have contacted three companies who haveshown interest in doing business with them.scanned for Paul Jennings

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