Concept explainers
Case summary: Company C is the largest oil company involved in every stage of oil from exploration to sales. It source crude oil from the United States, United Kingdom, Saudi Arabia, Nigeria, Mexico, Russia, and Canada. Company C created a production planning software called Petro. It is a massive linear programming model that is used at all levels model of sales and operation planning. It sets apart Company C is how the company uses the software. Analysts sit next to traders in each of Company C’s commodity trading locations and, through real-time connections. Petro data is constantly being updated with lab analysis of crude from different locales, changes in refinery process capabilities, changes in government or industry specifications, economic ups and downs, seasonal demand patterns, and price structures in the industry.
To determine: Capacity limitations do oil companies and inventory accounted for and used
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Operations and Supply Chain Management 9th edition
- 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. Why can changes within a supply chain disrupt the normal flow of goods and services within a supply chain?arrow_forward7 Using examples from the Ghanaian environment, describe the key components of facility decisions and explain how they influence a supply chain capabilities in terms of responsiveness and efficiency.arrow_forwardTropical Leisure Limited has been making high quality Caribbean leisure wears for over twenty-five years, in old rented premises located in the heart of the Barbadian capital of Bridgetown. The company has a flexible labour force of about twenty employees and three directors, only one of whom, namely Mr. Grant, the managing director, is fully active in the business, who wishes to take the business outside of Barbados. Thoughts have been given to launch a small sample on the European market. The company specializes in leisure and swim wear garments for the exotic, high end markets. Their current range consists of tee shirts, shorts, skirts and bath suits in rich vibrant Caribbean colours and styles for men, women and children. The company capacity is 400-500 garments per week, depending on style and continuity of the production run, but additional floor space and machines could be brought in quickly to raise production levels to a maximum of 1000 garments weekly if required. A new…arrow_forward
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- Grainger: Reengineering the China/U.S. Supply Chain W. W. Grainger, Inc., is a leading supplier of maintenance, repair, and operating (MRO) products to businesses and institutions in the United States, Canada, and Mexico, with an expanding presence in Japan, India, China, and Panama. The company works with more than 5,000 suppliers and runs an extensive website (www.grainger.com) where Grainger offers nearly 1.5 million products. The products range from industrial adhesives used in manufacturing, to hand tools, janitorial supplies, lighting equipment, and power tools. When something is needed by one of its customers, it is often needed quickly, so quick service and product availability are key drivers to Grainger's success. Your assignment involves studying U.S. distribution in Grainger's supply chain. Grainger works with over 250 suppliers in the China and Taiwan region. These suppliers produce products to Grainger's specifi cations and ship to the United States using ocean freight…arrow_forwardDescribe outsourcing methods, taking into account the complexities of the supply chain design. Furthermore, what is the appropriateness of outsourcing with regard to decision making and vertical integration, as these principles influence the management of the whole supply chain?arrow_forwardDefine the term redeployment? What significance does redeployment have?arrow_forward
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