Interpretation: Difference between the purchasing policies and procedures should be concluded as the dealerships purchase different types of service parts ad materials.
Concept Introduction: Any company’s supply chain is required to cater to the entire range of products and services required by the company. There are likely to be variations in the types of products and even services. The type of suppliers and the arrangements with suppliers have to be, essentially, suitable for each individual product/service depending on the type of requirements as well as the specific supply chain available in the market for such product/service. Thus, the organization needs to build flexibility and variations in its
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Operations Management: Processes And Supply Chains (12th Edition) (what's New In Operations Management)
- Should management weigh the benefits of holding products in several places across multiple areas versus delivering things vast distances to customers? Why or how is this the case? Give an explanation and some instances.arrow_forwardSupplier power is high when buyers have ________ choices from whom to buy and low when buyers have ________ choices. Group of answer choices few; few few; many many; many many; fewarrow_forwardToyota Motors is trying to assess the performance of two manufacturers that could supply music systems for its vehicles. Using the information in the table below determine which manufacturer Toyota should use and why? Toyota’s decision to choose the supplier is based upon what type of demand? Performance Evaluation of Brands Issues Important weights Manufacture A’s performance Manufacture B’s performance Sound 0.4 5 3 Cost 0.3 2 4 Delivery Time 0.1 2 2 Brand cachet 0.2 5 1 Total 1arrow_forward
- This question requires you to reflect on your knowledge and understanding of supply chain management. • If the procurement process for inventory is not ethically done, what do you think would be the impact on organisations? • Do you think the individual responsible for managing inventory i.e., performing ABC analyses or tracking inventory through a warehouse needs to be analytical? Why or why not? • Would using artificial intelligence through computer programs give a non-analytical person an advantage? • Could a career in inventory management be the future for you? Why or why not?arrow_forwardPlease briefly explain why the correct option is right and why the other options are incorrect. 1) Which of the following is the PRIMARY reason for institutionalizing continuous improvement in the supply chain? a)To help suppliers enhance capability in their processes, allowing both the buyer and supplier to reap the benefits b)To determine where the supplier is making errors without raising costs in the supply chain c)To enable suppliers to voice concerns about how the organization is managing contracts with the supplier d)To make the buying organization more receptive to supplier concerns, including any negative feedbackarrow_forwardidentification stages of procurement at the clorox company??arrow_forward
- Prepare a short research paper explaining how to source computer chips which will be used in the manufacturing of the computers for your company who is planning to build them in China. Be sure to explain the entire sourcing and qualification process necessary in developing the entire Supply Chain. Explain the key factors involved and how they will impact your operations. Identify all companies you will be considering as vendors and explain why their selection. The paper should be double spaced in MLA format and contain at least 2 academic references not including textbook which can be used as well and as many websites needed, all will need to be MLA format on a separate reference page.arrow_forwardK Kamal Fatehl production manager of Kennesaw Manufacturing, finds his profit at $30,800 (as shown in the statement below) inadequate for expanding his business. The bank is insisting on an improved profit picture prior to approval of a loan for some new equipment. Kamal would like to improve profit line to $40,800 so he can obtain the bank's approval for the loan. % of sales Sales 280,000 100% Cost of supply chain purchases 182,000 65% Other production costs 39,200 14% 10% Fixed costs Profit 28,000 30,800 11% a) What percentage improvement is needed in a supply chain strategy for profit to improve to $40,800? What is the cost of materialarrow_forwardA sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Moreover, there are very few suppliers in the world that can supply the heating tubes. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube?arrow_forward
- What three factors are considered while purchasing hardware?arrow_forwardWhat was the packaging system of pepciCo supply chain management. (Answer should be free of plagiarism and should have proper facts and figures with relevant examples)arrow_forwardIn purchasing an item, there are two conceptual dimensions, generally speaking, either product or service. Compare and contrast the two concepts in terms of similarity and difference. What kind of item can be an example, which includes both dimensions of product and service?arrow_forward
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