In a situation where limited domestic competition exists and favorable pricing is required, expanding the geographic supply base to identify additional suppliers is the best course of action. This approach increases competition by including more suppliers from different regions, potentially leading to better pricing and terms.
It also provides access to a larger pool of suppliers, enhancing the chances of finding suppliers who can offer more competitive rates and better service.
References
* CIPS (Chartered Institute of Procurement & Supply). Global Sourcing Strategies.
* ISM (Institute for Supply Management). Expanding Supply Base for Competitive Advantage.

* Annual Business Review Focus: The goal is to address a supplier's service performance and product quality.
* Using a Scorecard: A scorecard based on internal surveys provides a structured and comprehensive way to evaluate and communicate performance metrics.
* Feedback Collection: Internal surveys gather feedback from various departments that interact with the supplier, offering a holistic view of their performance.
* Performance Metrics: The scorecard includes key performance indicators (KPIs) that are relevant to service performance and product quality, facilitating objective assessment and discussion during the review.
References
* ISM (Institute for Supply Management). (n.d.). Supplier Performance Metrics and Scorecards.
* APQC. (2018). Using Scorecards for Supplier Performance Management.

To determine the most cost-effective packaging option, we need to consider both the cost per packaging unit and the projected breakage ratio. Here are the calculations:
For 0.50 mm packaging:
* Cost per unit: $1.00
* Breakage ratio: 0.50%
* Effective cost considering breakage: $1.00 * (1 + 0.005) = $1.005
For 0.60 mm packaging:
* Cost per unit: $0.80
* Breakage ratio: 0.75%
* Effective cost considering breakage: $0.80 * (1 + 0.0075) = $0.806
Comparing $1.005 to $0.806, the 0.60 mm packaging is more cost-effective. Therefore, the supply manager should recommend the 0.60 mm packaging.
References
* Supply Chain Management principles regarding cost analysis.
* Basic breakage and cost calculations used in supply chain decision-making.