a.
Interpretation:
The spending category that has been identified as a priority and the supplier organization is most promising candidate.
Concept Introduction:
Supplier positioning matrix classifies each spending categories based on annual expense and supply vulnerability. In a supplier positioning matrix spend categories with high cost and high risk are dubbed as strategic critical.
b.
Interpretation:
The spend category that should be viewed as tactical decision and the purchase contract that should be awarded to the lowest cost bid through competitive bidding.
Concept Introduction:
Supplier positioning matrix classifies each spending categories based on annual expense and supply vulnerability. In a supplier positioning matrix spend categories with high cost and high risk are dubbed as strategic critical.
c.
Interpretation:
The supplier that would be willing to offer lower price and the supplier that would see the SW food Bank’s purchasing contract as nuisance.
Concept Introduction:
A supplier preference model places the suppliers on matrix based on supplier’s view on attractiveness of contract and value of business for supplier. Here purchasing manager considers how much the organization’s contract is valuable to the supplier.
Want to see the full answer?
Check out a sample textbook solutionChapter 9 Solutions
Practical Operations Management
- Catalina is Changing Supermarket Shopper Measurement Catalina Inc. is a Florida-based company specializing in supermarket shopper tracking and coupon issuing. The company has about 1,200 employees and operates in the United States, as well as in major European countries. The company built its business model on issuing coupons to grocery shoppers online when they check out. The basis for this business model is that traditional print media has long production lead times, and the response to these media is not measurable on the individual customer level. Thus, supermarkets and manufacturers cannot run and track individualized campaigns with traditional media. Catalina’s system consists of a printer connected to the cashier’s scanner and a database. The information on each shopping basket that checks out via the scanner is then stored in the database. Using the person’s credit card number or check number, the database links individual shopping baskets over time. If the person pays cash,…arrow_forward“The ABC Supply company is currently experiencing with an inventory rotation problem. This difficulty stems from the fact that some supplies must be used prior to a stated expiration date. Upon receipt, a new shipment of these perishable items must be stacked beneath the boxes that are currently in inventory. A substantial amount of time is consumed in restacking the items according to their expiration dates.” Required: Explain the DMAIC methodology that can be used by the “ABC” company to implement Six Sigma Process for the above scenario.arrow_forwardMpho is an avid seamstress and want to sew and sell high quality, reusable designer face masks during the current Covid-19 pandemic. She will design and sew the masks herself and use her automatic embroidery machine to put her logo on each mask sold. With the help of her son, deliveries will be made all over Gauteng within 3 days of placing the order. Every mask will have a unique three-layer design with adjustable straps to ensure comfort and it. Mpho’s only expenseis the material needed to sew the masks and delivery costs. At this stage, Mpho’starget market is limited to Gauteng. Draw a diagram to illustrate the transformation process of Mpho’s new business. Be sure to include all relevant elements, headings and arrows to indicate the flow of products/ services. Question: 1. Draw a diagram to illustrate the transformation process of Mpho’s new business. Be sure to include all relevant elements, headings and arrows to indicate the flow of products/ services.arrow_forward
- Mpho is an avid seamstress and want to sew and sell high quality, reusable, designer face masks during the current Covid-19 pandemic. She will design and sew the masks herself and use her automatic embroidery machine to put her logo on each mask sold. With the help of her son, deliveries will be made all over Gauteng within 3 days of placing the order. Every mask will have a unique three-layer design with adjustable straps to ensure comfort and fit. Mpho’s only expense is the material needed to sew the masks and delivery costs. At this stage, Mpho’s target market is limited to Gauteng. Question: Create a diagram to illustrate the transformation process of Mpho’s new business. Be sure to include all relevant elements, headings and arrows to indicate the flowof products/ services. What should be in the diagram: outputs, inputs, feedback, transformation process and flow of product and service ect.arrow_forwardThe MSSP process can be described in terms of a series of elements that should be used in the purchase of goods and services. Briefly discribe these elements.arrow_forwardOne of the products of Edwards Lifesciences (EL) is artificial heart valves made from the heart valves of pigs.8 Different sizes of valves are required. However, the size of a pig's heart valve cannot be ascertained before the heart is purchased and opened. Therefore, EL has a mismatch problem: shortages of some sizes and excess of others. A program was established to document the size distribution of valves supplied by each supplier, and purchases were made from those suppliers with the needed sizes. Linear programming was used to determine the set of the suppliers that collectively satisfied EL's demand. Suppose EL purchases pig valves from three suppliers. The cost and size mix of the valves purchased from each supplier are given in the table below. Each month EL places one order with each supplier. Suppose next month, 250 large, 300 medium, and 100 small valves are needed. Formulate an LP that can be used to minimize the cost of acquiring the needed valves and use Excel's Solver to…arrow_forward
- At an Oxford grocery store, the manager Jenny Produce buys lettuce each day to ensure really fresh produce. In her focus on quality, each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week Jenny can buy fresh lettuce for $10.00 a box. The lettuce is sold for $22.00 a box and the dealer that sells old lettuce is willing to pay $2.00 a box. Past history says that tomorrow's demand for lettuce averages 270 boxes with a standard deviation of 44 boxes. How many boxes of lettuce should Jenny purchase tomorrow? (Use Excel's NORMSINV() function to find the Z-score. Round intermediate calculations to four decimal places. Round your answer to the nearest whole number.) I have asked this 3 times and nobody has got it right.arrow_forwardThe Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…arrow_forwardThe Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month: Jan Feb Mar Apr May Jun Jul Aug Sep Oct Orders: 1230 1155 1263 1159 1361 1273 1147 1250 1356 1155 Create tables to support your answer: a. Compute the monthly…arrow_forward
- The Instant Paper Clip Office Supply Company sells and delivers office supplies to companies, schools, and agencies within a 50-mile radius of its warehouse. The office supply business is competitive, and the ability to deliver orders promptly is a big factor in getting new customers and maintaining old ones. (Offices typically order not when they run low on supplies, but when they completely run out. As a result, they need their orders immediately.) The manager of the company wants to be certain that enough drivers and vehicles are available to deliver orders promptly and that they have adequate inventory in stock. Therefore, the manager wants to be able to forecast the demand for deliveries during the next month. From the records of previous orders, management has accumulated the following data for the past 10 months: Month Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Orders 145 70 115 85 120 54 82 141 123 94 Compute the…arrow_forwardAnnual precipitation at rain – gauge station X and the average annual precipitation at 20 surrounding rain – gauge stations are given below. Examine the consistency of data at station X. Indicate at what year a change in regime has occurred and how are you going to make the necessary adjustmentsarrow_forwardClips, a competitor of Staples, is a national chain that provides office supplies to small businesses. Maya, who is the store manager at the Bethesda store, is also responsible for the store’s replenishment functions. Maya is interested in establishing a standard replenishment policy for some of her steady, non-seasonal products of which paperclips is one. Paperclips sell in small boxes that contain two hundred units. Maya estimates that Clips Bethesda sells 100 boxes of paperclips in a typical week and that the purchase price for Clips per box of paperclips is $2.00. The fixed ordering cost any time an order is placed is $20. Maya also estimates a nominal holding cost of $0.10 per box per week. (a) What is the optimal order quantity for paperclips at their Bethesda store?(b) Assuming 50 weeks in a year, how many times a year should the paperclips be ordered?arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.