As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems. Required: Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems. Required: Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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As a purchasing manager for a manufacturer of domestic appliances, you are to source the door seal for a new model of a microwave oven. The component has caused problems in the past but the design problems have now been overcome. The market has been competitive and any problems with the new model could be disastrous. Preliminary sourcing indicates that Permaseal Limited has a substantially lower price than the other suppliers, including your current supplier Thermalbond Limited. However, the last time you did business with Permaseal Limited was six years ago and at the time you experienced some quality and delivery problems.
Required:
Explain in detail how you would undertake this sourcing exercise in order to ensure that you select the best possible supplier for the long term.
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