IPL is a leading manufacturing company. Under increasing pressure to reduce costs, tocontrol inventory level and to improve services, IPL's Costing Department has recentlyundertaken a decision to implement a JIT System.The management of IPL is convinced of the benefits of their changes. But SuppliesManager "W" fears with the Costing Department's decision. He said:"We've been driven by suppliers for years... they would insist that we could only purchasein thousands, that we would have to wait weeks, or that they would only deliver onMondays!"RequiredCOMMENT on Mr. W's viewpoint.

JIT or Just in Time inventory management assurances that stock will reach the exact moment it is…

Answered: IPL is a leading manufacturing company.…

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 5.1SA

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Similar questions

Q1: You are a distribution center manager; you understand distribution facilities would provide a variety of services according to the requirements of the supply chain. Your manager requested you to do the training for your team, it should discuss the primary functions of DC, what are they? Q2: When goods need to be transported, the supply chain manager can choose from five modes of transportation: truck, rail, air, water and pipeline. What are the main functions, advantages and disadvantages of each basic mode? Giving goods example under each mode.
H-E-B has once again placed a limit on paper products — some of the most coveted necessities of 2020. On Saturday, the San Antonio-based grocery giant updated its list of product purchase limits. “Limits are a proven way to stabilize the supply chain and we utilize this temporary tool to prevent supply disruption which could impact availability,” Dya Campos, Director of Government and Public Affairs, told KSAT. Would you agree that H-E-B is trying to address a supply-side problem? Why or why not?
A . Inc. is continuously seeking to reduce its supply chain inventory. The costs of products produced last year amounted to 7,48 million dollars and the inventory to 1,46 million dollars. This year, merchandise sold cost 8.57 million dollars and inventory spending 1,62 million dollars. a) What were the delivery weeks last year?
The electronics industry has often come under scrutiny due to:a.) Primarily high pricesb.) Limited supplyc.) Aggravated demandd.) Planning streams of new products
From OSCM chpt 16, explain the concept of TCO- what is required and how is it useful to make purchasing decisions. Give an example of something you purchased recently.
How might purchasing policies and procedures differ as the dealerships purchase different types of service parts and materials (for example, lubricants versus genuine GM parts)?
2 ) While design for manufacturing often focuses on aspects of product fabrication, this type of analysis addresses many processes that can affect the supply chain. Explain how each of the factors of “Design for Manufacturing” can impact onthe supply chain process of Whirlpool Corporation. Note this is not an essay question.
A contractor of fast food giant failed to deliver the expected output of an inventory systems upgrade. This resulted to more than 70 branches closing due to inventory problems. It compromised the sales for the month. What do you think were the potential opportunities opened up to other players in the fastfood industry?
Great American Inc. (GA), a California based construction company, has been buying wooden floor plate from Davidson Supply (DS) for the last 3 years. Mr. Gordon Shuttle, the GA Purchasing Director, so far, is satisfied with DS services, including product quality and on-time delivery services. Due to the keen competition in the industry in recent year, GA management decided to review DS’s overall supply performance.a) What kinds of challenges that GA should consider? b) If GA decides not to use DS’s supply in future, what will be GA’s otheroptions? c) What kinds of risks GA may face if taking such options?
Please briefly explain why the correct option is right and why the other options are incorrect. 1) Which of the following is the PRIMARY reason for institutionalizing continuous improvement in the supply chain? a)To help suppliers enhance capability in their processes, allowing both the buyer and supplier to reap the benefits b)To determine where the supplier is making errors without raising costs in the supply chain c)To enable suppliers to voice concerns about how the organization is managing contracts with the supplier d)To make the buying organization more receptive to supplier concerns, including any negative feedback
SLO 6.1. Supply contributes to organizational goals and strategies through: Strategic contributions (opportunity maximization)Operational contribution (bottom-line impact)Direct contribution (enhancing performance of others)Indirect contribution (trouble prevention)Profit-leverage contribution (intangible) NEWSLO 6.2. For an organization with revenue of $100 million, purchases of $60 million, and profit of $8 million before tax, a 10 percent reduction in purchase spend would result in an increase in profit of: 10 percent36 percent57 percent60 percent75 percent
Matt ress Wholesalers, Inc., is constantly trying to reduce inventory in its supply chain. Last year, cost of goods sold was $7.5 million and inventory was $ 1.5 million. This year, cost ofgoods sold is $8.6 million and inventory investment is $1.6 million. Ja) What were the weeks of supply last year?b) What are the weeks of supply this year?c) Is Mattress Wholesalers making progress in its inventoryreduction effort?

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