
Case summary:
DR Company is a restaurant which owns many popular brands like OG, RL and etc. They serve more than 300 million meals every year in over 1700 restaurants across the US Country and 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. Meals over 300 million means, they are a combination of shrimp, huge quantities of swordfish and other fresh purchases. They have to be maintained at a temperature of 34 degrees Fahrenheit.
The purchasing agents of DR travel all around the world to identify sustainable advantages in the supply chain. They maintain a good relationship with all the suppliers which help them to evaluate each supplier easily.
All suppliers must adhere to the standards mentioned by DR Company which are very strict than regular standards. Their aggressive strategy can make them a good candidate for outsourcing. They can involve in outsourcing as they are the purchasers of bulk orders.
To determine: The reason for DR Company outsources harvesting and prepare more seafood.

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Chapter 2 Solutions
Operations Management
- Examine the conflicts between improving customer service levels and controlling costs in sales. Strategies to Balance Both customer service levels and controlling costs in sales 1.Outsourcing and workforce optimization 2. AI-driven customer supportarrow_forwardhow can you gain trust in a negotiation setting?arrow_forward✓ Custom $€ .0 .on File Home Insert Share Page Layout Formulas Data Review View Help Draw Arial 10 B B14 ✓ X✓ fx 1400 > 甘く 曲 > 冠 > Comments Editing ✓ . . . P Q R S T 3 A Production cost ($/unit) B с D E F G H J K L M N $74.00 4 Inventory holding cost ($/unit) $1.50 5 Lost sales cost ($/unit) $82.00 6 Overtime cost ($/unit) $6.80 7 Undertime cost ($/unit) $3.20 8 Rate change cost ($/unit) $5.00 9 Normal production rate (units) 2,000 10 Ending inventory (previous Dec.) 800 11 Cumulative 12 13 Month Demand Cumulative Demand Product Production Availability Ending Inventory Lost Cumulative Cumulative Product Sales 14 January 1,400 1,475 15 FUERANZ222222223323333BRUINE 14 February 1,000 2,275 Month January February Demand Demand Production Availability Ending Inventory Lost Sales 1,400 #N/A 1,475 #N/A #N/A #N/A 1,000 #N/A 2,275 #N/A #N/A #N/A 16 March 1,800 2,275 March 1,800 #N/A 2,275 #N/A #N/A #N/A 17 April 2,700 2,275 April 2,700 #N/A 2,275 #N/A #N/A #N/A 18 May 3,000 2,275 May 3,000 #N/A…arrow_forward
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