Case summary:
DR Company is a restaurant which owns many popular brands like OG, RL. They serve more than 300 million meals every year over 1700 restaurants across US Country, CN Country. To possess a competitive advantage they must achieve excellence at every step of the supply chain.
They have a complex and challenging task of maintaining the quality of perishable goods. Those 300 million meals means, they are a combination of shrimp, big quantities of swordfish and other fresh purchases. They have to be maintained at a temperature of 34 degree Fahrenheit.
The purchasing agents of DR travel all-round the world to identify sustainable advantages in the supply chain. They maintain a good relationship with all the suppliers all over the world which helps to evaluate the suppliers easily.
All suppliers must adhere to the standards mentioned by DR Company which are stricter than regular standards. Their aggressive strategy can make them a good candidate for outsourcing. They can involve in outsourcing as they are purchasers of bulk orders.
To determine: How other firms develop their supply chain similar to DR Company.
Want to see the full answer?
Check out a sample textbook solutionChapter 2 Solutions
Principles Of Operations Management
- Part 1. (A) Describe at least 2 benefits of an organization outsourcing its production overseas/globally? (B) Describe at least 2 disadvantages of outsourcing? Part 2: (A) Describe an example of a company that opted to outsource its global production. (B) Discuss situations or reasons why the company/business might not want to pursue global production.arrow_forwardFor expand its operations to different countries, Fuel Up Restaurant should adopt a Transnational Strategy. This approach combines elements of both global and multi domestic strategies, allowing the restaurant to achieve global efficiency while also catering to local tastes and preferences. Here's why Fuel Up should choose a Transnational Strategy: Global Efficiency: By standardizing certain processes and menu items across all locations, Fuel Up can benefit from economies of scale and streamline its operations. This includes utilizing centralized production facilities for bulk preparation of staple items, just-in-time inventory management, and technology integration for online ordering and payment. Local Adaptation: While maintaining global efficiency, a transnational strategy also allows Fuel Up to customize its offerings to suit local preferences and dietary habits in each new market. This could involve sourcing locally grown produce, adapting menu items to accommodate regional…arrow_forwardTo support its operations today, an organisation has to decide whether to outsource or retain its operations internally. In the past, Vodafone has entered various IT outsourcing arrangements with specialist companies. Describe what is meant by IT outsourcing. Utilise the Transaction Cost Theory to discuss Vodafone’s outsourcing decisions. Has Vodafone managed to retain its core competence given its outsourcing arrangements?arrow_forward
- Explain the difference of between vertical integration and market coordination. Explain the type of contractual agreement that are in place for both models and provide two factors that would permit market coordination to provide the some advantages similar to vertical integration. (Your answer should not have more than 200 words per sub-questions).arrow_forwardUse the case study below to explain Vertical Integration The Case Apple’s ownership of its own branded stores set the firm apart from computer makers such as Hewlett-Packard, Dell, and Lenovo that only distribute their products through retailers like Best Buy and Office Depot. Employees at Best Buy and Office Depot are likely to know only a little bit about each of the various brands their store carries. In contrast, Apple’s stores are popular in part because store employees are experts about Apple products. They can therefore provide customers with accurate and insightful advice about purchases and repairs. This is an important advantage that has been created through forward vertical integration.arrow_forward1. Bill Gates of Microsoft describes the 2000s as ‘business @ the speed of thought’. Discuss the importance of speed in the supply chain. How can speed be increased within the supply chain?arrow_forward
- ) Caravan Engineering is a leading global manufacturer of brake shoes. As competitors started catching up, the firm instituted a value analysis program, came up with new drawings and specifications for its brake shoe components, and selected suppliers (from a worldwide pool of 1000 suppliers) who offered the best price. The firm also embarked on a business process reengineering (BPR) program and identified new sets of core competencies in marketing, product innovation, assembly, and supply management. The supply management function was revamped and a chief supply officer (CSO) position created. The CPO was made part of the executive committee thus allowing for a tight alignment of supply strategies with the firm’s corporate strategy. Over the next year, the CFO was able to reduce the worldwide supply base from 1000 suppliers to 50 suppliers, build relationships with them through long-term contracts, training, certification, and involving them from the design stage. The results of this…arrow_forwardWhat are some ways that Alaska can ensure that quality andperformance metric standards are met when the company outsourcesits ground operations to a contract provider?arrow_forwardExplain Supply Chain Management Strategy Of CADBURY company– specify the complete movement of products and services from suppliers to distributors. NOTE: Please explain it in a detailed manner with at least 800 wordsarrow_forward
- History of Dell’s outsourcing call center to IndiaDell is a well‐known brand of personal computers which are sold directly to end‐users. With thedirect sales model, Dell could save costs and became the cost leader in PC industry. Its revenueincreased from 6.2 million USD in 1985 to 62 million USD in 2009. Dell was the number one marketshare in USA and globally for a long time. In order to serve a large number of customers better andcut down costs, Dell decided to outsource call centers in India. Dell opened its first call center inBangalore, India in 2001 to provide technical support for customers in U.S. After that, it set up thesecond customer contact center in Hyderabad in 2003 to deal with the increase in customer base.Eventually, the third call center of Dell was opened in Chandigarh metro area in the north of India. In recent years, call centers are one of the most popular businesses that are outsourced. Not onlyDell but also many global and famous companies such as AOL, American…arrow_forwardpaper tape binder memo pads pens depart 1 10 4 3 5 6 depart 2 7 2 2 3 8 depart 3 4 5 1 0 10 depart 4 0 3 4 5 5 supplier 1 supplier 2 paper 2 3 tape 1 1 binder 4 3 memo pads 3 3 pens 1 2 a)Use matrix multiplication to get a matrix showing the comparative costs for each department for the products from the two suppliers. (b) Find the total cost over all departments to buy products from each supplier. From which supplier should the company make the purchase?arrow_forward(Adapted from Portillo, 2009) Recall the case study on designing a resilient global supply chain discussed in Section 8.6. The five main criteria considered are as follows: GP: Gross profit LT: Lead time DF: Demand fulfillment RD: Risk of disruption SF: Strategic factor (a) Using a rating method, the Director of supply chain, assigned a score from 1 to 10 (1 being the least important and 10 being the most important) for the five criteria as shown in Table 8.10. Determine the criteria weights using the rating method. (b) Suppose the Director of supply chain ranks the criteria from most important to least important as follows: (Most important) GP, DF, LT, SF, RD (Least important) Using Borda count, determine the criteria weights.arrow_forward
- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,Operations ManagementOperations ManagementISBN:9781259667473Author:William J StevensonPublisher:McGraw-Hill EducationOperations and Supply Chain Management (Mcgraw-hi...Operations ManagementISBN:9781259666100Author:F. Robert Jacobs, Richard B ChasePublisher:McGraw-Hill Education
- Purchasing and Supply Chain ManagementOperations ManagementISBN:9781285869681Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. PattersonPublisher:Cengage LearningProduction and Operations Analysis, Seventh Editi...Operations ManagementISBN:9781478623069Author:Steven Nahmias, Tava Lennon OlsenPublisher:Waveland Press, Inc.