Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Question
Chapter 6.9, Problem 26P
Summary Introduction
Interpretation:Pros and cons of having too many v/s too few suppliers in the supply chain.
Concept Introduction:Suppliers are essential components of a supply chain, in fact of any organization. The organization needs to establish a policy about the number of suppliers or, order quantities to each supplier. Optimization of the number of suppliers for an item is dependent on many factors like the item itself, the characteristics of the available suppliers, capacity and logistics available to suppliers, finance of the company etc. This is a unique decision by every company, in fact for every critical item, though the general concept is to have a few reliable supplier.
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Discuss why having too many suppliers can be troublesome. Can having too fewsuppliers also be a problem?
Describe how easy is it to switch suppliers and what could complicate a firm's ability to switch to a new supplier ?
How easy is it to switch suppliers? What could complicate a firm’s ability to switch to a new supplier?
Chapter 6 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 6.2 - Prob. 1PCh. 6.2 - Prob. 2PCh. 6.2 - Prob. 3PCh. 6.2 - Prob. 4PCh. 6.2 - Prob. 5PCh. 6.2 - Prob. 6PCh. 6.2 - Prob. 7PCh. 6.2 - Prob. 8PCh. 6.5 - Prob. 10PCh. 6.5 - Prob. 11P
Ch. 6.5 - Prob. 12PCh. 6.5 - Prob. 13PCh. 6.5 - Prob. 14PCh. 6.5 - Prob. 15PCh. 6.5 - Prob. 16PCh. 6.6 - Prob. 17PCh. 6.6 - Prob. 18PCh. 6.6 - Prob. 19PCh. 6.6 - Prob. 20PCh. 6.6 - Prob. 21PCh. 6.9 - Prob. 22PCh. 6.9 - Prob. 24PCh. 6.9 - Prob. 25PCh. 6.9 - Prob. 26PCh. 6.9 - Prob. 27PCh. 6.9 - Prob. 28PCh. 6.9 - Prob. 29PCh. 6.9 - Prob. 30PCh. 6.9 - Prob. 31PCh. 6.10 - Prob. 34PCh. 6.11 - Prob. 37PCh. 6.11 - Prob. 38PCh. 6.11 - Prob. 39PCh. 6.11 - Prob. 41P
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Similar questions
- Explain how easy is it to switch suppliers and what could complicate a firm's ability to switch to a new supplier ?arrow_forwardWhy should the time required to assess and pick suppliers be reduced?arrow_forwardWhy is it important to choose a supplier? What considerations should be taken into account when choosing a supplier?arrow_forward
- A. Calculate the total cost for each supplier. B. Which supplier would you select? C. If you could move the lot size up to ship in truckload quantities, calculate the total cost for each supplier.arrow_forwardWhy is it important to choose the right supplier and keep in touch with that supplier?arrow_forwardHow simple is it to change suppliers? What could make switching to a new supplier more difficult for a company?arrow_forward
- OEM tend to have one of four types of relationship with suppliers from arm's length to vertical integration. suggest reason an OEM may have for selecting each of these 4 types of relationships with suppliersarrow_forward"What are the best practices for integrating suppliers?" is a question worth addressing.arrow_forward
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