To explain: The reason why firms single source contracts.
Case summary:
Person SD and Person DM are the procurement managers at Company
Material quality and on-time delivery:
The quality of the materials plays an important role in the success of an organization. The quality of the materials plays a vital role in product quality. The on-time delivery of products is the delivery of products at the right time which makes it important for an organization to be competitive.
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Chapter C Solutions
Purchasing and Supply Chain Management
- Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Explain the role of performance measurement in managing supply chain activities.arrow_forwardAvion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?arrow_forwardAvion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each other and reviewed a troubling performance report concerning a key supplier, Foster Technologies. The report detailed the deteriorating performance of Foster Technologies in the areas of material quality and on-time delivery. At this point, Kevin ODonnell, another procurement manager, entered the room. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?arrow_forward
- Does the organization have a code of conduct for suppliers that clearly represents acceptable and unacceptable labor practices that align with the ILO stan-dards? Are there penalties in place to enforce compliance?arrow_forwardConsider the following hypothetical situation and answer the question in the forum:The company Home Appliances of México is negotiating a service contract to subcontract the call service, which allows it to coordinate repairs with the Spanish Call Center. What suggestions would you give to the company Home Appliances of México so that it can conduct a successful negotiation? Because?arrow_forwardWhile developing the procurement strategy, the project manager requests that you use a contract type that will obligate the seller to accept all cost overruns, errors, and consequential damages in the project. Which of the following contract type will you select? a. Time and Materials b. Fixed Price c. Best Price d. Cost Reimbursablearrow_forward
- Explain the meaning of the term WACC by providing examplesarrow_forwardAtomic Kat Ltd manages a famous pop group known as Atomic Kat. Each member of the group has signed a contract with Atomic Kat Ltd agreeing to perform in the band. In January, Atomic Kat Ltd began negotiations with Alcopops Plc for sponsorship for Atomic Kat, a, in a proposed 6-week tour. Natasha is the lead singer in Atomic Kat. In February Natasha informed the rest of the members of the group that she was thinking of going solo. ‘I’m not sure, I’m thinking about it’, she said. In March, Atomic Kat Ltd signed a sponsorship agreement with Alcopops Plc under which Atomic Kat Ltd agreed to promote Alcopops over a fixed duration 6-week tour in return for the sum of £100,000 paid by Alcopops to support the group’s tour. Atomic Kat Ltd immediately began marketing and publicity for the tour, and sold hundreds of tickets to fans who were looking forward to hearing the band and especially Natasha who is the band’s most famous member. The tour has now began, but at the end of the first…arrow_forwardProcurement- Which of the following is not a risk of countertrade? A. Receiving product of greater quality than the specifications require B. Possibility of poor-quality goods and services C. Development of unprofitable deals D. Acceptance of goods and services that do not match marketing channelsarrow_forward
- Assume that your class group has been selected and hired by the FAO to manage this FAOFunded Aquaponics Project described in the article (above). Using expressed and impliedinformation in the article, your project team is required to craft/develop some projectdocuments and plans to help in the overall management of the Aquaponics Project, withspecific focus on the components and questions/statements listed below Craft a high-level Procurement Management Plan for the projectarrow_forwardIf procurement specialists believe in change and innovation, what steps can be taken to accommodate these factors in long-term contracts?arrow_forwardThe procurement profession pays inadequate attention to skills development; for example, negotiation skills. Do you agree? Why?arrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage Learning