MyOMLab Principles of operations management : Sustainability and supply chain management (Book & eText Access Card)
10th Edition
ISBN: 9780134184111
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 2, Problem 9P
Summary Introduction
To determine: The suitable outsourcing provider based on cultural risk factors using factor- rating method.
Introduction:
Factor-rating method:
The factor-rating method is a quantitative approach to make a decision from various alternatives such that the decision is beneficial to the firm involved. This method is utilized to decide on new layout, new locations, best supplier, outsourcing providers etc.
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Ranga Ramasesh is the operations manager for a firm that is trying to decide which one of four countries it should research for possible outsourcing providers. The first step is to select a country based on cultural risk factors, which are critical to eventual business success with the provider. Ranga has reviewed outsourcing provider directories and found that the four countries in the table that follows have an ample number of providers from which they can choose. To aid in the country selection step, he has enlisted the aid of a cultural expert, John Wang, who has provided ratings of the various criteria in the table. The resulting ratings are on a 1 to 10 scale, where 1 is a low risk and 10 is a high risk. John has also determined six criteria weightings: Trust, with a weight of 0.4; Quality, with 0.2; Religious, with 0.1; Individualism, with 0.1; Time, with 0.1; and Uncertainty, with 0.1. Using the factor-rating method, which country should Ranga select?
Ranga Ramasesh is the operations manager fora firm that is trying to decide which one of four countries itshould research for possible outsourcing providers. The firststep is to select a country based on cultural risk factors, whichare critical to eventual business success with the provider.Ranga has reviewed outsourcing provider directories andfound that the four countries in the table that follows have anample number of providers from which they can choose. Toaid in the country selection step, he has enlisted the aid of acultural expert, John Wang, who has provided ratings of thevarious criteria in the table. The resulting ratings are on a 1 to10 scale, where 1 is a low risk and 10 is a high risk. John has also determined six criteria weightings: Trust,with a weight of 0.4; Quality, with 0.2; Religious, with 0.1;Individualism, with 0.1; Time, with 0.1; and Uncertainty,with 0.1. Using the factor-rating method, which countryshould Ranga select?
When competing in multiple foreign markets, companies find it advantageous to concentrate their activities in a limited number of locations in all these conditions EXCEPT when
A)there are significant scale economies in performing an activity.
B) the activiites should be customized to each location to adequately meet buyer needs.
C)certain locations have superior resources or other valuable advantages for performing certain activities.
D) the costs of some activities are significantly lower in some geographic locations than in others.
E) there is a steep learning or experience curve associated with performing the activity in any location.
Chapter 2 Solutions
MyOMLab Principles of operations management : Sustainability and supply chain management (Book & eText Access Card)
Ch. 2 - Prob. 1EDCh. 2 - Prob. 1DQCh. 2 - Prob. 2DQCh. 2 - Prob. 3DQCh. 2 - Prob. 4DQCh. 2 - Prob. 5DQCh. 2 - Prob. 6DQCh. 2 - Prob. 7DQCh. 2 - As a library or Internet assignment, identify the...Ch. 2 - Prob. 9DQ
Ch. 2 - Prob. 10DQCh. 2 - Prob. 11DQCh. 2 - Prob. 12DQCh. 2 - Prob. 13DQCh. 2 - Prob. 14DQCh. 2 - Prob. 15DQCh. 2 - Prob. 16DQCh. 2 - Prob. 17DQCh. 2 - Prob. 18DQCh. 2 - Prob. 1PCh. 2 - Prob. 2PCh. 2 - Prob. 3PCh. 2 - Prob. 4PCh. 2 - Within the food service industry (restaurants that...Ch. 2 - Prob. 6PCh. 2 - Prob. 7PCh. 2 - Prob. 8PCh. 2 - Prob. 9PCh. 2 - Prob. 10PCh. 2 - Prob. 11PCh. 2 - Prob. 12PCh. 2 - Prob. 13PCh. 2 - Rapid-Lube A huge market exists for automobile...Ch. 2 - Rapid-Lube A huge market exists for automobile...Ch. 2 - Rapid-Lube A huge market exists for automobile...Ch. 2 - Prob. 1.1VCCh. 2 - Prob. 1.2VCCh. 2 - Prob. 1.3VCCh. 2 - Prob. 1.4VCCh. 2 - Prob. 2.1VCCh. 2 - Prob. 2.2VCCh. 2 - Prob. 2.3VCCh. 2 - Prob. 3.1VCCh. 2 - Prob. 3.2VCCh. 2 - Prob. 3.3VCCh. 2 - Prob. 3.4VC
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