OPERATIONS MANAGEMENT LL PACKAGE
11th Edition
ISBN: 9781323592632
Author: KRAJEWSKI
Publisher: Pearson Custom Publishing
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Question
Chapter 14, Problem 1C
Summary Introduction
Interpretation: Salient factors to be considered to establish a supplier relationship process for suppliers of Wolf Motors-a dealer of automobile parts.
Concept Introduction: Right from the activity of developing a supply chain to the continual improvement of the chain, supplier relationship processes are to be designed and implemented. Such processes are essential to build and operate an efficient and responsive supply chain.
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What recommendations would you make to John Wolf with respect to structuring the supplier relationship process for the Wolf Motors dealershipnetwork?
Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1400 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows:
Supplier A- Price of $150 per set, plus packing cost of $3.00 per set. Total inland freight costs for all 1400 units would be $550 per month.
Supplier B- Price of $74.00 per set, plus packing cost of $2.00 per set. International transportation costs would total $4000 per month, while total inland freight costs would be $850 per month.
Supplier C- Price of $97 per set, plus packing cost of $4 per set. International transportation costs would total $4800 per month, while total inland freight costs would be $1200 per month.
The total landed cost per month for Supplier B is __$
Explain each of the following terminologies in the context of SCM with an example:
Supplier deviations,
Stop ship dynamics,
Material compatibility,
Chapter 14 Solutions
OPERATIONS MANAGEMENT LL PACKAGE
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- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?arrow_forwardAvion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. 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 a smooth flow of material?arrow_forwardAvion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Explain the role of performance measurement in managing supply chain activities.arrow_forward
- How could you benefit from supplier partnership?arrow_forwardThe field of sourcing and supply chain management is characterised by constant change. Companies like are finding new ways of doing business to remain competitive. Moving forward, the focus will shift from arm’s length transactions to closer, collaborative relationships with key suppliers. Organizations may find it in their favour to incorporate suppliers into the business and develop strategic supply relationships with them. Outline the characteristics of future supplier relationships.arrow_forwardTo appoint the right suppliers, analysis on the suppliers’ ability to meet satisfactory quality, delivery, quantity, price or cost, and service should be done. They also should achieve other criteria to strengthen their efficiency too. Elaborate any four (4) criteria to be fulfilled.arrow_forward
- Discuss the term Proximity to supplier's?arrow_forwardWhat is the bargaining power of suppliers for AT&T?arrow_forwardYou have been asked to analyze the bids for 200 polished disks used in solar panels. These bids have been sub-mitted by three suppliers: Thailand Polishing, India Shine, and Sacramento Glow. Thailand Polishing has submitted a bid of2,000 baht. India Shine has submitted a bid of 2,000 rupees.Sacramento Glow has submitted a bid of $200. You check withyour local bank and find that +1 = 10 baht and +1 = 8 rupees.Which company should you choose?arrow_forward
- Tommy's Family Furniture is looking for a new supplier for its armchairs. Tommy is primarily interested in only two criterion: price and name brand value. He considers the value of the name brand to be three times more important than price. Tommy has narrowed his choices to two suppliers. On a 10-point scale, he has assigned Amy's Armchairs a score of 8 on price and 5 on name brand value. He has assigned Annie's Armchairs a score of 3 on price and 6 on name brand value. Apply the factor weighting technique to help Tommy choose a new armchair supplier.arrow_forwardWhy would this cause a procurement professional to integrate with trucking or train companies more intensely? With the Mississippi River at its 8th-lowest water level on record, grounding risk has increased for barge operators,and multiple groundings have been reported on the Lower MississippiOn Tuesday, the U.S. Coast Guard relayed reports of new barge groundings near Stack Island, Mississippi andMemphis, Tennessee, and waterway closures are in effect around both sites. Coast Guard Sector Lower MississippiRiver has reported eight groundings in the past week due to low water levels. "Due to low water levels on the Lower Mississippi River, we have seen an increase in commercial vesselgroundings," said Capt. Eric Carrero, Director of Western Rivers and Waterways at Coast Guard District Eight. "Inresponse, the Coast Guard established a Marine Transportation System Recovery Unit with our federal, state, local,and maritime industry partners to facilitate safe navigation and the continued…arrow_forwardExplain Proximity to Suppliers?arrow_forward
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