EBK PRINCIPLES OF OPERATIONS MANAGEMENT
EBK PRINCIPLES OF OPERATIONS MANAGEMENT
11th Edition
ISBN: 9780135175644
Author: Munson
Publisher: VST
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Chapter 2, Problem 3.4VC
Summary Introduction

Case summary:

DR Company is a restaurant which owns many popular brands like OG, RL. They serve more than 300 million meals every year over 1700 restaurants across US Country, CN Country. To possess a competitive advantage they must achieve excellence at every step of the supply chain.

They have a complex and challenging task of maintaining the quality of perishable goods. Those 300 million meals means, they are a combination of shrimp, big quantities of swordfish and other fresh purchases. They have to be maintained at a temperature of 34 degree Fahrenheit.

The purchasing agents of DR travel all-round the world to identify sustainable advantages in the supply chain. They maintain a good relationship with all the suppliers all over the world which helps to evaluate the suppliers easily.

All suppliers must adhere to the standards mentioned by DR Company which are stricter than regular standards. Their aggressive strategy can make them a good candidate for outsourcing. They can involve in outsourcing as they are purchasers of bulk orders.

To determine: Why DR Company outsources its harvesting and preparation of seafood.

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Aqua Manufacturing Limited is one of the leading dry blend beverage companies in Jamaica. Theirportfolio includes Aqua Food Drink, La-Soy Lactose-Free, Porridge Mix, Whole Milk and ReadiMilk. These are all household names that stand for quality throughout the Caribbean, NorthAmerica, Canada and the UK. As a company with global intent, it has a strong businessrelationship with its suppliers. Either independently or through contract manufacturers, thecompany manufactures, markets, and sells a variety of products through its export division. Required:A. What are FOUR (4) ways in which a firm like Aqua Manufacturing benefits from goodsourcing decisions?
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