Avion Case 1

Decent Essays

1.What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain smooth flow of material?
There are two components of the supply chain that have broken down in this instance, materials management and production. Materials management is responsible for correctly forecasting the needed supplies and materials and passing that information off to the supplier. Production is responsible for maintaining a good line of communication based of their demand, if they are in need of more material and supplies this needs to be up-channeled to management which in turn should make a decision based on the information at hand. In my opinion, based on the available …show more content…

7. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
Changes within the supply chain can disrupt the normal flow of goods and services because each change hasn’t been fully scrutinized. A firm can plan and speculate that a change with have a certain effect on the supply chain, but until those processes have been measured it is impossible to know the true cause and effect of any disruption.
8. Why might Avion want to reduce the lead times on its purchased materials and components?
If Avion reduced their lead times on purchased materials and components it could help them gain a competitive advantage on their competitors and well as allow them to eat up market share. The lower your lead time on an order translates to the product being in the hands of the customer that much faster. With a lower lead time your customers will be happier possibly even allowing you to charge a higher price for the product.
9. Why do firms single source contracts?
Single sourcing a contract is a strategy that many firms will use to gain a competitive advantage over their competition. When a contact is single source it forms an alliance of sorts which provides the opportunity for the two firms to manage costs and resources much more

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