A1: Sandy needs to explain the entire situation to her boss first thing in the morning. She needs to come to her boss with a plan of action in the morning. Sandy needs to speak to a representative of Pearl’s that has more authority than their sales agent. She needs to take the stance that Pearl guaranteed the quality of the lumber, and thusly should have taken further packaging precautions to protect against insect infestation. If Pearl’s representatives continue to take a fighting stance and deny responsibility for the infested wood, then Sandy needs to obtain approval to buy the additional lumber needed from the local supplier Smokey Lumber. The cost of delaying a production on a massive job would most likely be greater than taking a hit …show more content…
If I were Sandy I would have been working to the wee hours of the morning doing extensive research on multiple companies on which to release the contract for a quick bidding process. I cannot decisively make an argument for a bidding process to be viable in this situation due to the lack of information. The guidelines for when to enter competitive bidding in chapter 8 specify a wide range of variables that should be taken into consideration before beginning a process for bidding. We cannot make the decision because we don’t know the “dollar value of the purchase,” (Min 6006) the “number of suppliers who are willing to participate in the bidding process,”(Min 6006) or what a sufficient amount of time would be to prepare and submit bids for a purchase like this would be. Q3: What kind of supply risk created Sandy’s dilemma? A3: The risk that was created in Sandy’s situation was an Internal risk. Sandy’s dilemma was a supply shortage which is classified in the Internal risk category (Min, 5934). Q4: What kind of sourcing mistakes did Sandy make? (List at least three sourcing decision errors made by
As seen in the cases above with castings and O-rings, even the simplest of parts can pose complications in the auction process. Potential for successful reduction in cost can be recognized with a more concentrated event and management effort. This can be true for engineered parts as well but on a less likely basis. The primary key to success to an auction of this nature would be to not have any surprises or to anticipate suppliers’ behavior. Building on this idea would be to truly know your suppliers, which can get cumbersome in a company with a lot of growth through acquisitions and locations. However, with regional procurement managers, it is not impossible. There should not have been a question “if” an incumbent was going to bid, good vendor management would have assured that a last minute entry by way of an incumbent would not have happened. Applying this thought to the engineered parts, an auction would only be effective if suppliers invited to bid have been fully vetted. An auction can speed up the process of getting time sensitive information to suppliers, but it also may open
The company did not perform as well as they should have been able to. There were multiple areas where problems arose, such as the technical architecture of the IT system, relying only on the 3rd party, Qdata, to monitor their IT infrastructure, keeping out of date manuals, and not maintaining their emergency procedures.
Lorman Lumber is a publicly traded company with widely held shares. Its Yamica location in rural Oregon is one of the company’s largest. The purpose of the plant is to process and treat wood, which it does through a number of facilities. The Sawmill began producing lumber products in 1947, which it does by peeling, milling, and chipping raw wood. Lorman has a known record of producing good profits, and will often pay out generous performance-based bonuses to executives. Although the Yamica plant is somewhat outdated, it is still considered to be efficient and profitable. Starting in 1968, the company began using new methods to condition and pressure-treat wood products through the
David C. Shaw prepared this case solely to provide material for class discussion. The author does not intend to illustrate either effective or ineffective handling of a managerial situation. The author may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of reproduction, storage or transmittal without its written permission. Reproduction of this material is not covered under authorization by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Ivey Publishing, Ivey Management Services, c/o Richard Ivey School of Business, The
g. Risk: Situation that increase uncertainty or capabilities of achieving the primary objectives of “secure threat missile systems”, “Secure the Port Ray Nuclear Reactor”, and “Destroy the Caprica’s Thunder terrorist camp”, and “Deter further Caprican aggression” (less is better).
Part 15 of the Federal Acquisition Regulations (FAR) “prescribes [the] policies and procedures governing competitive and noncompetitive negotiated acquisitions.” One component of negotiated acquisitions that occurs early in the acquisition process is the solicitation of proposals. FAR 15.201, titled, “Exchanges with Industry before Receipt of Proposals,” regulates the type and manner of communications, also sometimes referred to as exchanges, which can – and cannot – take place between the Government and potential suppliers prior to the receipt of a potential supplier’s proposal and the subsequent award of a contract.
Simultaneously I would contact the other vendors (if any, depending on the Single source reason) and find out if they are interested in participate on the solicitation. Also, find out what was the reason/s of them not biding or not participate.
Northwest Canadian Forest Products Limited is a company that owns and operates five saw mills in British Columbia and Alberta, Canada. They produce lumber for construction in a few different countries. The President of the company is dealing with a tough situation with one of her mills in Jackson, British Columbia. The mill in Jackson is her least productive mill and she soon has to make a decision that could cost the company a substantial amount of money. She has the choice of either investing 50 million in the weak Jackson mill or to invest more that 50 million in a new mill high demand area. The president has been informed of the many complaints from the managers and supervisors, but nothing seems to be the right solution.
First I would categorized them in 3 different groups, business related, political and environmental, but is very important to mention that in some cases a single risk can be categorize in more than one group, for example, that is the case of the weather risk that I consider in the environmental group but it has a direct impact in the business related group.
The documentary Escape Fire: The Fight to Rescue American Healthcare explains the numerous controversies in our healthcare system and where the system is going if it follows the same footsteps it has been taking for the past decade. Throughout the documentary there are many hosts in which they all give their personal insight on the American Healthcare System and how the system is failing and on the verge to a catastrophic breakdown. All of the hosts gathered their data through personal research that they did on the system and from working in their perspective fields over the years and just seeing the trends the healthcare system is taking and going towards.
There was no formal bidding process. In addition, it appeared that not all bidders were treated equally. This can be seen when the bidding process was opened back up after the contractors were narrowed down to
* There are three (3) schools of thought regarding risk. The first considers the positive and negative aspects of risk, but sees them as separate. The second group believes that there are benefits from treating threats and opportunities together, while the third school does not label uncertainties, but addresses uncertainty as part of “doing the job.” Argue the value of having a risk strategy despite the cost associated with it. Include an example to support
When we delve into the word 'risk ', we find that it has a multitude of meanings, and that it is nowhere near as clear and precise as the advocates of traditional risk assessment assert, for example Hansson (2002) identifies five different common uses for the word risk, and Ekberg points out a "proliferation of risk definitions" and a whole range of different understandings of risk (2007 p345).
Thompson Division tota Costs to Birch Paper = $288, being $400 made up of $280 for materials (linerboard and corrugating medium) and $120 for other costs. However because Thompson sources its materials from Southern division who make a $112 profit on materials, the total Cost to Birch Paper Company is materials $168 + other cost $120 = $288
b) Another alternative should be using the negotiation method in order to develop a “win-win” situation. A negotiating party would have to be applied, “When a long period of time is required to produce the items purchased” (p 375). In these circumstances, suitable economic price adjustment clauses must be negotiated. Opportunities for various improvements may develop, such as the new manufacturing methods, new packaging possibilities, substitute materials, new plant layouts, and new tools. Negotiation permits an examination and evaluation of all these potential improvements. Competitive bidding does not. The advantage would be assurance of a long-term business with the Company along with reasonable profit for the supplier and reasonable cost for the buyer.