Suppliers offer two basic grades of materials: standard and superior. The qualities of superior and
standard materials are the same from supplier to supplier. All suppliers charge the going market price
because of the commodity nature of both standard and superior materials. The use of superior fabrics and
shoe sole materials improves shoe quality and performance, but shoes can be manufactured with any
percentage combination of standard and superior materials. All footwear-making equipment in
present and future plants accommodates whatever percentage mix of standard and superior components
that management opts to use.
The “base prices” for materials, which are subject to change by your instructor as the game progresses,
are currently $6 per pair for footwear made of 100% standard materials and $12 for footwear made of
100% superior materials. However, the prevailing base prices are adjusted up or down according to the
percentage mix of standard-superior materials usage and the strength of demand for footwear materials: