Total Cost of Ownership (TCO) is an important concept, not the least when outsourcing activities to external partners. The general manager of XXL Ltd. is about to take a decision on outsourcing production of several items to Asia due to the fact the company is lacking production capacity. He is however concerned that the total cost of the products, when arriving from suppliers, is going to be higher that anticipated due to: Select all alternatives that apply. Handling costs Transport

Total Cost of Ownership (TCO) is an important concept, not the least when outsourcing activities to external partners. The general manager of XXL Ltd. is about to take a decision on outsourcing production of several items to Asia due to the fact the company is lacking production capacity. He is however concerned that the total cost of the products, when arriving from suppliers, is going to be higher that anticipated due to: Select all alternatives that apply. Handling costs Transport

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 1.7A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...

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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. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Covid19 has brought many changes in the business strategies and processes. These businesses have learned various newinsights due to their uncertain supply chain disruption. As we learn from our experiences, these firms have learned somelessons and have made specific changes in their strategies, policies, and procedures to cater to such uncertain forthcomingevents.Being a Supply chain operations and logistics expert, you are required to do case study research on a single firm. That firmmust have some global footprints. Meaning, either they are importing more than 50% of material from other countries orexporting more than 50% of finished goods to other countries.You have to conduct at least one interview from their supply chain department of that particular industry to explore thefollowing areas?✓ What are the industry-wide effects of COVID19 lockdown?✓ What are the organization-specific effects of COVID19 lockdown on different supply chains and operationalareas? (provide the detailed…
Can you help me solve this question? The case study is provided as image. This subject is about retail and service logistics. Please just explain it in 150 words. Make sure to read the CASE STUDY. Question: Supply and demand mismatch: From theory discuss- why are the mismatches between supply and demand? How does Food-Town supply chain supply chain deal with this kind of mismatch during Covid-19? How the Food-Town can be more responsive and provide customers what they need, when they need it, and where they need it.
1. As a logistic manager, please advise the relationship between logistics and supply chain management? 2. You are the owner of fresh fruit store; is there a way you can adapt the omni-channel. Please explain the reason why or why not?
Brian and Dom have pooled their resources and have started a major logistics company that transports produce such as potatoes, maize meal and carrots. Their depot is based in Midrand, Gauteng. The pair wants to grow the business and has therefore sought your assistance as a supply chain scholar to assist with the following questions that they have for you. Both partners understand the need to measure performance, however, Dom prefers to have financial performance measures and Brian prefers to have nonfinancial measures. Advise the partners on which performance measure/s you believe should be used. Justify your stance by discussing at least three key points.
Q)Arslan is an exporter and producer of cutlery products. For the last few years, he is facing problems in his business. After a detailed investigation, he realized that he has severe problems in his organizational supply chain management system. One of the major problems identified is that he can’t measure the supply chain management system's performance properly. He wants to improve the supply chain management system and want to develop an effective model to measure the performance supply chain management system. Being an expert in the supply chain suggests a standardized modelto measure the performance properly.
Bamburi Cement is a cement manufacturing company that has been operating in Kenya for more than ten years. The supply chain of Bamburi includes the suppliers and customers. Effective management of the supply chain relationships is a critical factor in ensuring increased profits by Bamburi. Required; Explain two ways that adoption of a modern Enterprise resource planning software such as Microsoft Navision would enable Bamburi to improve the supply chain relationships with the suppliers and customers. (b) Explain two ways that a well-developed and designed Accounting system would add value for an organization such as Strathmore University.
(Adapted from Portillo, 2009) Recall the case study on designing a resilient global supply chain discussed in Section 8.6. The five main criteria considered are as follows: GP: Gross profit LT: Lead time DF: Demand fulfillment RD: Risk of disruption SF: Strategic factor (a) Using a rating method, the Director of supply chain, assigned a score from 1 to 10 (1 being the least important and 10 being the most important) for the five criteria as shown in Table 8.10. Determine the criteria weights using the rating method. (b) Suppose the Director of supply chain ranks the criteria from most important to least important as follows: (Most important) GP, DF, LT, SF, RD (Least important) Using Borda count, determine the criteria weights.
Explain the Wilson approach in supply chain management. What are its key principles?
The bullwhip effect is used to describe how relatively small fluctuations in the market can cause increasing volatility further back in the chain. What is the main driver of this phenomenon O a. The creating of partnership relationships in the supply chain b. Collaborative Planning Forecasting and Replenishment (CPFR) C. Introduction of information systems linking all parts of the supply chain Od. The desire by the different links in the chain to manage their production rates and inventory levels sensibly.