1. Study the supply chain integration of companies operating in Namibia below and identify the TYPE OR LEVEL of Integration involved in each case. Please justify your answer! c) A Producer Classification System has also been introduced; this tool enables Meatco to interact with its producers and provide first-rate service delivery to those producers who have the greatest impact on the business. d) Namibia Dairies (ND) established a depot at Katima Mulilo to have the ND portfolio available to all Namibians in all areas of the country. According to the ND Managing director, "the depot will also provide a call and collect service to the Katima customer base to ensure stock availability; promote cross border trade, expand ND business, and ensure synergies with our sister company Namibia Breweries Limited (NBL) at the Katima facility.
Q: explain budgetary control as it relates to hotel facilities
A: Budgetary control is a key aspect of financial management in any organization, including hotels. It…
Q: Explain what an IMIS is and how it functions.
A: The Information Management Information System (IMIS) is an indispensable instrument for businesses…
Q: Voluntary Accreditation provides numerous, specific benefits to public health agencies that are…
A: SOLUTION: The voluntary accreditation process, businesses can assess and enhance their performance…
Q: The fifth management practice is ‘Innovation’, identify the drivers and challenges of organizational…
A: Concept Introduction :- Organizational innovation refers to the process of implementing new ideas,…
Q: What is the systems development life cycle?
A: In today's digital environment, the development of software systems is essential for the achievement…
Q: Please explain the photo attached and cite some examples thank you
A: Businesses in the hospitality industry provide services to people who are away from home and require…
Q: Imagine you are an analyst working for the Super Store Corporation. Your boss Sylvia is the VP of…
A: Introduction: As an analyst working for Super Store Corporation, I have conducted an exploratory…
Q: Discuss 3 elements of innovation important to organizational change What role do these elements…
A: An alteration in the structure or any process, strategy, or culture of an organization is referred…
Q: Analyse the statement below and answer the questions that follows. (a) "Business Process…
A: The objectives of Business Process Reengineering (BPR) and Business Process Improvement (BPI) are to…
Q: Please provide a thesis statement from the topic: The impact and implications of theft as an…
A: Businesses have a fundamental responsibility to conduct themselves with integrity, honesty, and…
Q: Identify the tentative risks (types of risks) in your group project and do a risk assessment using…
A: Note : The solution is provided in a generalized way. 1) Group projects are an important part of…
Q: Management John is the CEO of a large corporation that has been facing financial difficulties. In…
A: Financial difficulties refer to a situation where an individual or organization is struggling to…
Q: How can a firm ensure that their strategic plan remains flexible and adaptable to changing…
A: A strategic plan is an essential document for any organization that outlines its long-term goals and…
Q: What strategies improve service delivery?
A: Service Delivery: Services are the intangible offerings that are provided by the organisations to…
Q: what are some sustainability leadership challenges of climate change on the seafood industry now and…
A: Note: As per bartleby guidelines an expert is required to answer only first question in case…
Q: Give typing answer with explanation and conclusion Many businesspeople contend that bribery is an…
A: International business can be complex and challenging, especially when dealing with different…
Q: Identify and summarize two peer-reviewed project management ethical research studies.
A: Ethics is an essential component of project management, as it involves making decisions that are…
Q: Miranda is in charge of tracking the output quality of recycled aluminum at Reclaimed Metals. When…
A: Workload management can be described as the process of distributing work among the employees. This…
Q: Methodology for "THE RELATIONSHIP BETWEEN COMMUNICATION SKILLS AND ORGANIZATIONAL PERFORMANCE"
A: Introduction: The purpose of this study is to investigate the relationship between communication…
Q: FAO-Funded Aquaponics Project Launched In Barbados Barbados GIS – The United Nations Food and…
A: Introduction An integrated change control process is a formal process for reviewing and approving…
Q: Discuss the following Discuss the current Federal Funds rate and the prime rate and explain how they…
A: “Since you have posted a question with multiple sub parts, we will provide the solution only to the…
Q: 1. From the perspective of your department and management level (as the customer service manager),…
A: INTRODUCTION: Pay and salaries for employees are crucial factors in any organization. Although there…
Q: How can we talk about the contrasts between high-contact and low-contact services?
A: Introduction: There are many different kinds of services in the service industry that can be grouped…
Q: The MGMT Insurance Ltd. accepts payments on various insurance policies from employees of businesses…
A: As the Manager of Information Technology, you are responsible for analyzing the business operations…
Q: What traits make a great leader? Why? How do these traits relate back to leadership behaviors? What…
A: Leadership is the ability to inspire, guide and motivate others toward achieving a common goal. It…
Q: If you were in an administrative or supervisory role in healthcare and were in charge of selecting…
A: Note: As per bartleby guidelines providing external website link or reference to any source is not…
Q: Distinguish the role ethics play and provide a real-world example of an organization that was…
A: INTRODUCTION: In the business sector, ethical behavior is crucial. Every company should strive to…
Q: By reference to the data in part A: 1. Return on investment (ROI), residual income (RI), and…
A: Introduction: In today's business environment, understanding the financial health of a company is…
Q: demonstrate how to create a staff training program for a company using Blake and Mouton's Managerial…
A: Creating a staff training program for a company is an essential process to improve employee skills…
Q: how can teams be made effective in an organization ?
A: Teams are an integral part of any organization, and their effectiveness can have a significant…
Q: Case study: Zappos, based in Las Vegas, is an online retailer with the initial goal of trying to be…
A: Zappos is an online retailer based in Las Vegas that started with a focus on providing the best…
Q: briefly describe the role of the following parties to a project financing. 1. project company (SPV)…
A: Project financing is a strategy for sponsoring large-scale industrial and infrastructure projects.…
Q: The MGMT Insurance Ltd. accepts payments on various insurance policies fromemplovees of businesses…
A: Introduction: Individuals and businesses alike benefit greatly from the financial security and…
Q: The Caribbean Team “Vibes” or “Not”: Another Day in the Life of a Call Centre In a rare moment…
A: In this scenario, Jennifer Ames, the senior director for global customer support at Gerber Goodstart…
Q: An essay needed please
A: Introduction A collective agreement is the result of the voluntary process of collective bargaining,…
Q: What are workplace dynamics, and why are they important for creating a positive and productive work…
A: Workplace dynamics are necessary to create a positive and productive work environment. They help to…
Q: Topic: Project management Please read and answer thoroughly as a risk management team FAO-Funded…
A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: Electronic Health Record (EHR) and Electronic Medical Record (EMR) are components and examples of…
A: In recent years, technology has become an integral part of healthcare operations, and one of the…
Q: When describing operations beyond the scope of a systems analysis, it may be useful to do so in a…
A: A system's objectives are determined by doing a system analysis of it or one of its components. It…
Q: Yes, you've worked together as a team for several weeks and you've discussed your "cross cultural…
A: Introduction The six national cultural dimensions of power distance, individualism against…
Q: 7.10. Bank cards are commonly used for payment in electronic commerce and in physi- cal…
A: Electronic commerce has become increasingly prevalent in today's society, with many people opting to…
Q: The MGMT Insurance Ltd. accepts payments on various insurance policies fromemplovees of businesses…
A: Introduction: As an Operational Manager in the Claims Department of MGMT Insurance Ltd., the issue…
Q: Discuss the current supply chain technologies that can be deployed to tackle the supply crunch as a…
A: The epidemic of COVID-19 and the ongoing Russia-Ukraine conflict have had a substantial influence on…
Q: Examine the extent to which public procurement law has contributed to the achievement of value for…
A: Government as well as public bodies buy products, services, and projects from the private sector…
Q: How does it operate, and what is, contingency planning?
A: One component of risk management, contingency planning entails preparing for unanticipated…
Q: Outline the scope of Human Resource management in the light of ongoing changes in management thought…
A: Concept Introduction :- Human Resource Management (HRM) is the process of managing human resources…
Q: You are responsible for receiving, maintaining, and supporting the beneficiary for the duration of…
A: It is the responsibility of the sponsoring individual or organization to guarantee that the…
Q: Compare and contrast covert and overt leadership in terms of their significance in the exercise of…
A: Leadership is the capacity to persuade and inspire people to work towards a common objective.…
Q: Differentiate between storage that is kept on your own property and storage that is kept elsewhere.
A: As the amount of data that businesses and individuals accumulate increases, the need for storage has…
1. Study the supply chain integration of companies operating in Namibia below and identify the TYPE OR LEVEL
of Integration involved in each case. Please justify your answer!
c) A Producer Classification System has also been introduced; this tool enables Meatco to interact with
its producers and provide first-rate service delivery to those producers who have the greatest impact
on the business.
d) Namibia Dairies (ND) established a depot at Katima Mulilo to have the ND portfolio available to all
Namibians in all areas of the country. According to the ND Managing director, "the depot will also
provide a call and collect service to the Katima customer base to ensure stock availability; promote
cross border trade, expand ND business, and ensure synergies with our sister company Namibia
Breweries Limited (NBL) at the Katima facility.
Step by step
Solved in 3 steps
- 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?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on this case, do you think international purchasing is more or less complex than domestic purchasing? Why? Is it worth the additional effort?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Original Wire.
- The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Based on the total cost per unit, which supplier should Sheila recommend?The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Calculate the total cost per unit of purchasing from Happy Lucky Assemblies.The Global Sourcing Wire Harness Decision Sheila Austin, a buyer at Autolink, a Detroit-based producer of subassemblies for the automotive market, has sent out requests for quotations for a wiring harness to four prospective suppliers. Only two of the four suppliers indicated an interest in quoting the business: Original Wire (Auburn Hills, MI) and Happy Lucky Assemblies (HLA) of Guangdong Province, China. The estimated demand for the harnesses is 5,000 units a month. Both suppliers will incur some costs to retool for this particular harness. The harnesses will be prepackaged in 24 12 6-inch cartons. Each packaged unit weighs approximately 10 pounds. Quote 1 The first quote received is from Original Wire. Auburn Hills is about 20 miles from Autolinks corporate headquarters, so the quote was delivered in person. When Sheila went down to the lobby, she was greeted by the sales agent and an engineering representative. After the quote was handed over, the sales agent noted that engineering would be happy to work closely with Autolink in developing the unit and would also be interested in future business that might involve finding ways to reduce costs. The sales agent also noted that they were hungry for business, as they were losing a lot of customers to companies from China. The quote included unit price, tooling, and packaging. The quoted unit price does not include shipping costs. Original Wire requires no special warehousing of inventory, and daily deliveries from its manufacturing site directly to Autolinks assembly operations are possible. Original Wire Quote: Unit price = 30 Packing costs = 0.75 per unit Tooling = 6,000 one-time fixed charge Freight cost = 5.20 per hundred pounds Quote 2 The second quote received is from Happy Lucky Assemblies of Guangdong Province, China. The supplier must pack the harnesses in a container and ship via inland transportation to the port of Shanghai in China, have the shipment transferred to a container ship, ship material to Seattle, and then have material transported inland to Detroit. The quoted unit price does not include international shipping costs, which the buyer will assume. HLA Quote: Unit price = 19.50 Shipping lead time = Eight weeks Tooling = 3,000 In addition to the suppliers quote, Sheila must consider additional costs and information before preparing a comparison of the Chinese suppliers quotation: Each monthly shipment requires three 40-foot containers. Packing costs for containerization = 2 per unit. Cost of inland transportation to port of export = 200 per container. Freight forwarders fee = 100 per shipment (letter of credit, documentation, etc.). Cost of ocean transport = 4,000 per container. This has risen significantly in recent years due to a shortage of ocean freight capacity. Marine insurance = 0.50 per 100 of shipment. U.S. port handling charges = 1,200 per container. This fee has also risen considerably this year, due to increased security. Ports have also been complaining that the charges may increase in the future. Customs duty = 5% of unit cost. Customs broker fees per shipment = 300. Transportation from Seattle to Detroit = 18.60 per hundred pounds. Need to warehouse at least four weeks of inventory in Detroit at a warehousing cost of 1.00 per cubic foot per month, to compensate for lead time uncertainty. Sheila must also figure the costs associated with committing corporate capital for holding inventory. She has spoken to some accountants, who typically use a corporate cost of capital rate of 15%. Cost of hedging currencybroker fees = 400 per shipment Additional administrative time due to international shipping = 4 hours per shipment 25 per hour (estimated) At least two five-day visits per year to travel to China to meet with supplier and provide updates on performance and shipping = 20,000 per year (estimated) The international sourcing costs must be absorbed by Sheila, as the supplier does not assume any of the additional estimated costs and invoice Sheila later, or build the costs into a revised unit price. Sheila feels that the U.S. supplier is probably less expensive, even though it quoted a higher price. Sheila also knows that this is a standard technology that is unlikely to change during the next three years, but which could be a contract that extends multiple years out. There is also a lot of hall talk amongst the engineers on her floor about next-generation automotive electronics, which will completely eliminate the need for wire harnesses, which will be replaced by electronic components that are smaller, lighter, and more reliable. She is unsure about how to calculate the total costs for each option, and she is even more unsure about how to factor these other variables into the decision. Are there any other issues besides cost that Sheila should evaluate?
- 1. Study the supply chain integration of companies operating in Namibia below and identify the TYPE OR LEVELof Integration involved in each case. Please justify your answer! a) In 2013 Meatco formed a partnership agreement (Meatco-owned Cattle (MoC) Initiative) with itssuppliers to secure more cattle for slaughter. The initiative helps secure animals earlier in theproduction chain by procuring weaners and raising them to slaughter animals. b) Over the last year, much time and effort have been invested by Meatco's Information TechnologyDepartment to integrate the corporation’s supply channels and streamline the MoC initiatives,thereby ensuring that Meatco has full control over its biological assets.Study the supply chain integration of companies operating in Namibia below and identify the TYPE OR LEVELof Integration involved in each case. Please justify your answer! g) In 2003, Namibia Breweries Limited formed a strategic partnership with Diageo, the world's largestdistiller, and brewer Heineken. Brandhouse Beverages (Proprietary) Limited locally facilitated thepartnership. In 2004, NBL started producing Heineken for Namibia and exporting it to South Africa.Strategic Supply Chain Management Question. 3. Define the concept of outsourcing and write short notes on advantages and disadvantages of global outsourcing, citing relevant examples.
- Supply chain partner – a global networkCoca-Cola is a global company that operates at a local level. This means that there are currently around 225 bottling partners worldwide. The supply chain begins with the procurement of raw materials, which in the case of Coca-Cola also includes agricultural products (e.g. sugar cane or fruit) and water. The most important ingredients such as water and sugar are sourced locally, with the partners being able to choose only the type of sugar used. In Europe, mainly beet sugar is used, in Asia cane sugar and in America sugar from corn syrup. One of the first steps in Coca-Cola’s supply chain is the production of the concentrate, which is mixed with water, sugar and carbon dioxide by the bottling plants. The concentrate itself is produced at other plants. According to legend, the secretrecipe is kept in a safe in Atlanta. The legend also states that never more than two people should have access to it and know the exact recipe. After mixing, the…(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.Supply chain MGT at Bose Some product components, such as woofers, are sourced overseas. For example, at the Hillsdale, Michigan, plant, foreign sourcing accounts for 20% of purchases, with the remainder of suppliers located immediately within the state of Michigan. About 35% of the parts purchased at this site are single sourced, with approximately half of the components arriving with no incoming inspection performed. In turn, Bose ships finished products directly to Delco, Honda, and Nissan and has a record of no missed deliveries. Normal lead time to customers is 60 working days, but Bose can expedite shipments in one week and airfreight them if necessary. The company has developed a detailed supplier performance system that measures on-time delivery, quality performance, technical improvements, and supplier suggestions. A report is generated twice a month from this system and sent to the supplier providing feedback about supplier performance. If there is a three-week trend…