a)
To identify: The worst performance entities with respect to cash-to-cash, added unit cost, and on-time delivery.
Introduction:
Supply chain management is a wide range of actions that are taken to plan, manage, and execute the production of a product from acquiring of raw materials till the consumption stage.
b)
To explain: The areas where the improvements should be made to benefit the supply chain as a whole.
Introduction:
Supply chain management:
Supply chain management is a wide range of actions that are taken to plan, manage, and execute the production of a product from acquiring of raw materials till the consumption stage.
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OPERATIONS MANAGEMENT IN THE SUPPLY CHAIN: DECISIONS & CASES (Mcgraw-hill Series Operations and Decision Sciences)
- 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?arrow_forwardScenario 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?arrow_forwardList, and briefly explain, current trends in supply chain management.arrow_forward
- 1. Discuss ways to align your supply chain with business strategy. 2. Start an intelligent conversation about the supply chain management issues and how you will resolve it.arrow_forwardMo. Your manager is keen to improve your company's supply chain management, in particular to reduce costs and waste. You have been asked to write a report which includes details of two practices from another company which you would suggest adopting in your own company. Include the following: • What you admire about the other company's approach to its supply chain management • Which two of its practices you would adopt • Why your company would benefit from them Write in the space below.arrow_forwarda. Briefly explain what you understand by the term ‘supply chain’. b. Examine the three ‘A’s’ in supply chain management c.arrow_forward
- conceptualize the following concepts 1. Information technology in supply chain management 2 Integration of information technologies within the supply chain management 3. Supply chain Automation 4.Benefits of using system automation in Supply Chain managementarrow_forwardWhat are the key principles of the Wilson approach in supply chain management?arrow_forwardHow would you decide whether a supply chain needs improvement in dupply chain structure, supply chain systems, or botharrow_forward
- 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?arrow_forward1. Consider the purchase of a can of soda at a convenience store. Describe the various stages in the supply chain and the different flows involved, and specify the direction of each flow you mention. 2. Consider the supply chain involved when a customer purchases a book from an on-line bookstore, say Amazon. Identify cycles in this supply chain and the location of the push/pull boundary.arrow_forwardDiscuss the importance of each of the following:b. Managing a supply chainarrow_forward
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningContemporary MarketingMarketingISBN:9780357033777Author:Louis E. Boone, David L. KurtzPublisher:Cengage Learning