A.). What do you think of the statement “Boeing dug its own grave by outsourcing so much of the 787 to its supply chain? The firm could not possibly do an effective job of managing so many suppliers.” Take a for or against the position and justify the same. b) What are the advantages and disadvantages of allowing the suppliers to award contracts for their own supplies of the plane’s components?

A.). What do you think of the statement “Boeing dug its own grave by outsourcing so much of the 787 to its supply chain? The firm could not possibly do an effective job of managing so many suppliers.” Take a for or against the position and justify the same. b) What are the advantages and disadvantages of allowing the suppliers to award contracts for their own supplies of the plane’s components?

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 1.8A

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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. 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?
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.
Your company assembles five different models of a motor scooter that is sold in specialty stores in the United States. The company uses the same engine for all five models. You have been given the assignment of choosing a supplier for these engines for the coming year. Due to the size of your warehouse and other administrative restrictions, you must order the engines in lot sizes of 1,000 units. Because of the unique characteristics of the engine, special tooling is needed during the manufacturing process for which you agree to reimburse the supplier. Your assistant has obtained quotes from two reliable engine suppliers and you need to decide which to use. The following data have been collected: units 22 Requirements (annual forecast) Weight per engine Order processing cost Inventory carry cost 12,000 pounds per order 20 125 percent of the average value of inventory per year Note: Assume that half of lot size is in inventory on average (1,000/2 500 units) Two qualified suppliers have…
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Ethics When firms implement a single sourcing policyin their buying, other possible suppliers do not have anopportunity to compete for the business. Is this ethi·cal? What are the advantages to the company? Whatare the disadvantages?
8.Although technologically the full linking of theSCM systems of suppliers and buyers is feasible,many buyers are reluctant to do so. Why?
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