OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 11, Problem 9CQ
Summary Introduction
To explain: The best reason to add a second supplier for a critical component.
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Suppose that a large discount retailer with a lot of purchasing power in a supply chain requires that all suppliers incorporate a new information system that will reduce the cost of placing orders between the retailer and its suppliers as well as between the suppliers and their suppliers. Suppose also that order quantities and lead times are related; the smaller the order quantity the shorter the lead time from suppliers. Assume that all members of the supply chain use a continuous review system and EOQ order quantities. Explain the implications of the new information system for the supply chain in general and the inventory systems of the supply chain members in particular.
A document used to solicit bids from interested and qualified suppliers for goods and services that the organization needs to obtain is called a “rfp” request for approval, true or false?
The JIT solution:
Requires carrying materials inventory in order to lower the cost of inventory without production delays
Requires selection of vendors based on lowest cost alone
Exploits supplier linkages by negotiating long term contracts with a few chosen supplies located closest to the production facility and establishing more supplier involvement
Requires a solid forecast to push production
Chapter 11 Solutions
OPERATIONS MANAGEMENT (LL)-W/ACCESS
Ch. 11 - Prob. 1CQCh. 11 - Prob. 2CQCh. 11 - Prob. 3CQCh. 11 - Prob. 4CQCh. 11 - Prob. 5CQCh. 11 - Prob. 6CQCh. 11 - Prob. 7CQCh. 11 - Prob. 8CQCh. 11 - Prob. 9CQCh. 11 - Prob. 10CQ
Ch. 11 - Prob. 11CQCh. 11 - Prob. 12CQCh. 11 - Prob. 13CQCh. 11 - Over time, consumers have less of a need for a...Ch. 11 - For 10 percent of the products in a category, a...Ch. 11 - Anvils Works requires, on average, 2800 tons of...Ch. 11 - Prob. 3PACh. 11 - Prob. 1CCh. 11 - Prob. 2CCh. 11 - Rob Honeycutt created Timbuk2 to offer consumers...
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- No written by hand solution The questions below refer to the following SAME paragraph: Suppose a retailer Mojo, holds safety stock for an item to accommodate a 98% service level with uncertain demand. There are two supply options: Supplier X taking 5 days to deliver replenishments, and Supplier Y taking 3 days to replenish. Both suppliers charge the same price for the item. Ignoring differences in fixed order costs, the retailer should choose: Group of answer choices Supplier X Option Y only if the critical ratio is less than 0.9 Option X only if the critical ratio is greater than 0.9 Supplier Yarrow_forwardSLO 8.2. If the buyer does not have a clear and unambiguous description or specification and wants to find out which supplier can deliver the best value when and where needed, he or she will typically issue a: Request for quotation (RFQ)Request for proposal (RFP)Request for information (RFI)Request for bid (RFB)Request for suggestions (RFS) SLO 9.1. Blanket purchase orders: Reduce costs by decreasing the number of purchase orders issuedCover multiple purchase requirements on one orderAre difficult to prepareReduce costs by decreasing the number of purchase orders issued and cover multiple purchase requirements on one orderReduce costs by decreasing the number of purchase orders issued, cover multiple purchase requirements on one order, and are difficult to preparearrow_forwardWhich of the following statements about supply chain coordination contracts is TRUE? A A risk-averse business owner should enter a revenue-sharing rather than a buy-back contract. B The supplier faces increased overhead costs in a revenue-sharing contract. C Products with a short peak demand period should enter a buy-back contract rather than a revenue-sharing contract. D Buy-back contracts usually work more efficiently than revenue-sharing contracts.arrow_forward
- 26 Which of the following statements is true with regard to cycle stock? a It is also called surplus stock. b It is received from a downstream supply chain partner. c It is seasonal in nature d It is also referred to as base stock. 27 Inventories that are in transit in containers or trucks ______. a are known as pipeline inventories b are known as in-house inventories c are relatively small in global supply chain (as compared to domestic supply chains) d are known as en route inventoriesarrow_forwardCisco’s model of building a seamless supply chain is one that many companies can follow. It proves that you do not have to own or control most of the elements in your supply chain, yet have complete visibility of the chain. The Internet allows companies to coordinate more closely with their suppliers and also enables just-in-time delivery that lets businesses greatly reduce inventories. Cisco’s suppliers build and ship while Cisco handles all of financial transactions. This is an excellent instance of control/demand uncertainty fix. Please answer all 3 questions What is your inference about technology in the context? Implement SCOR model and mention the demand and supply uncertainty with the help of diagram. Identify if Cisco is following push strategy or pull strategy and explain how?arrow_forwardAs a supply chain manager, would you rather have a supplier with a five days average lead time with a plus or minus three-day variance or supplier with a ten-day lead time that was plus or minus one day in its delivery?arrow_forward
- Which of the following is not a characteristic of thefactor-weighting approach to supplier evalution?a) it applies quantitative scores to qualitative criteriab) the weights typically sum to 100%c) multiple criteria can be considered simultaneouslyd) subjective judgment is often involvede) it applies qualitative assessments to quantitativecriteriaarrow_forwardCisco’s model of building a seamless supply chain is one that many companies can follow. It proves that you do not have to own or control most of the elements in your supply chain, yet have complete visibility of the chain. The Internet allows companies to coordinate more closely with their suppliers and also enables just-in-time delivery that lets businesses greatly reduce inventories. Cisco’s suppliers build and ship while Cisco handles all of financial transactions. This is an excellent instance of control/demand uncertainty fix. Discuss your understanding about Supply Chain Visibility. What is your inference about technology in the context? Implement SCOR model and mention the demand and supply uncertainty with the help of diagram.arrow_forwardConcerns of suppliers when moving to SupplierPartnerships include:a) small lots sometimes seeming economicallyprohibitive.b) realistic quality demands.c) changes without adequate lead time.d) erratic schedules.e) all of the above.arrow_forward
- Which of the following statements is not true about efficient supply chains? a. Lower cost through high utilization b. The primary goals is to supply demand at the lowest cost c. Suppliers are selected based on cost and quality. d. Maintain capacity/flexibility to buffer against demand/supply uncertainty.arrow_forwardAfter the purchasing department approves the purchase requisition, a _____ will be prepared to acquire the goods or services from the supplier. Group of answer choices Purchase order Supplier invoice Voucher Checkarrow_forwardWhich of these statements about disaster relief supply chains is best?O Critical supplies are usually deployed the instant they are available in the disaster zone.O Employee turnover in disaster relief is low since these individuals are dedicated to the cause.O Supplies follow a pull flow initially but change to a push flow once demand is more predictable.O Most disaster relief supply chains exist for only short times.arrow_forward
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