(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.

(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.

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 5.4SA

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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?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. Ethical decisions that affect a buyers ethical perspective usually involve the organizational environment, cultural environment, personal environment, and industry environment. Analyze this scenario using these four variables.
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What should Sharon do in this situation?
Scenario 4 Sharon Gillespie, a new buyer at Visionex, Inc., was reviewing quotations for a tooling contract submitted by four suppliers. She was evaluating the quotes based on price, target quality levels, and delivery lead time promises. As she was working, her manager, Dave Cox, entered her office. He asked how everything was progressing and if she needed any help. She mentioned she was reviewing quotations from suppliers for a tooling contract. Dave asked who the interested suppliers were and if she had made a decision. Sharon indicated that one supplier, Apex, appeared to fit exactly the requirements Visionex had specified in the proposal. Dave told her to keep up the good work. Later that day Dave again visited Sharons office. He stated that he had done some research on the suppliers and felt that another supplier, Micron, appeared to have the best track record with Visionex. He pointed out that Sharons first choice was a new supplier to Visionex and there was some risk involved with that choice. Dave indicated that it would please him greatly if she selected Micron for the contract. The next day Sharon was having lunch with another buyer, Mark Smith. She mentioned the conversation with Dave and said she honestly felt that Apex was the best choice. When Mark asked Sharon who Dave preferred, she answered, Micron. At that point Mark rolled his eyes and shook his head. Sharon asked what the body language was all about. Mark replied, Look, I know youre new but you should know this. I heard last week that Daves brother-in-law is a new part owner of Micron. I was wondering how soon it would be before he started steering business to that company. He is not the straightest character. Sharon was shocked. After a few moments, she announced that her original choice was still the best selection. At that point Mark reminded Sharon that she was replacing a terminated buyer who did not go along with one of Daves previous preferred suppliers. What does the Institute of Supply Management code of ethics say about financial conflicts of interest?
Mistral plc is a wholesaler of fast-moving consumer goods throughout the UK. The board of directors has decided Mistral pic should use the principles of Supply Chain Management to spise ta activities, and a consultant has made the following specific recommendations to the board as a result(1)Focus on a reduced number of suppliers and high value customers(2)Engage in joint problem-solving with suppliers and customers(3)Restrict information for suppliers about how much inventory is needed Which of these recommendations apply applies the principles of Supply Chain Management? A. (3) onlyB. (1) and (2)C. (1) onlyD. (2) and (3)
Following are some of the information on demand and costs of a mobile phone manufacturer: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the previous year. The company uses a third-party storage solution for keeping its inventory. The charges are Rs. 100/unit. For procuring the raw material company relies on a contractor which provides them a one stop solution and charges Rs. 3000 per order. The actual cost of the raw material is approximately 7000/unit. Using the above given information answer the following questions? What is the Economic Order Quantity for the company? If a working year is 300 days find out how many orders the company will place for the current year and what would the gap between two orders? What will be the total cost of inventory policy for the company? If the delivery lead time for receiving the order is 20 days what should be the reorder point for the company?
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.
Use the Scenario below to answer Question 3: CoolClothes Manufacturers is a large clothing manufacturing company based in Johannesburg, CoolClothes not only manufactures their own clothing line, they also distribute it to the various fashion outlets throughout the country. As the Head of Operations for CoolClothes, you have noticed a steady decline In demand over the last six months across all fashion outlets. Upon investigation, it has become apparent that the decline is as a result of customer dissatisfaction in the quality of the clothing found in stores. You are unsure of whether it is worth manufacturing at the same quantity or not given the decline in demand.
Pinkie Ice-Cream Itd. Pinky Ice-cream Itd. is an ice-cream company that is located in the city of Palma and has branches in several communities. The brand is an emerging brand and is becoming very popular among children and young adults. One of the reasons why this brand of ice-cream is becoming so popular is because the quality is outstanding. The Operations manager work closely with the marketing manager to ensure that the best quality ice-cream is sold to customer. The OM manager uses the best quality ingredients and ensures that the best machines and labour are employed in the transformation process. They also produce a variety of flavours to ensure that the customers have a wide choice. Weekly customer demand for the ice-cream can be seen in the table below. Week Demand (gallons) 280 295 1 2 3 315 4 300 340 6 335 350 Seeing that the company is fairly new, management is yet to formulate a mission and a vision statement for the organization. They are planning to develop a strategic…
Will the supply chain world remain chaotic this year, asks Supply Chain Dive (Feb. 22, 2022)? What about shortages, scarce materials, and delivery expectations? How should companies approach their supply chain strategy in 2022? Here are 7 trends suggested in a new ebook: TREND #1: LABOR SHORTAGE CONTINUES The first prediction for 2022 is that the labor shortage in supply chains will continue well into 2022. There’s no area of labor left unturned – be it labor planning, employee retention, labor efficiencies, or robotics. Every strategy and profit impact option must be rescoped. TREND #2: NEED FOR REAL-TIME VISIBILITY Companies are now recognizing the importance of real-time visibility in their supply chain. Disruptions are rampant and costs are soaring. Teams need to be more proactive in the way they handle their processes, people, and products. TREND #3: RISING VENDOR EXPECTATIONS Companies are starting to demand more from their vendors in terms of functionality,…
Will the supply chain world remain chaotic this year, asks Supply Chain Dive (Feb. 22, 2022)? What about shortages, scarce materials, and delivery expectations? How should companies approach their supply chain strategy in 2022? Here are 7 trends suggested in a new ebook: TREND #1: LABOR SHORTAGE CONTINUES The first prediction for 2022 is that the labor shortage in supply chains will continue well into 2022. There’s no area of labor left unturned – be it labor planning, employee retention, labor efficiencies, or robotics. Every strategy and profit impact option must be rescoped. TREND #2: NEED FOR REAL-TIME VISIBILITY Companies are now recognizing the importance of real-time visibility in their supply chain. Disruptions are rampant and costs are soaring. Teams need to be more proactive in the way they handle their processes, people, and products. TREND #3: RISING VENDOR EXPECTATIONS Companies are starting to demand more from their vendors in terms of functionality,…