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.

Question

Why does Darden outsource harvesting and preparation of much of its seafood?

Answer 1

Question

Chapter 2, Problem 3.4VC

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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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Why does Darden outsource harvesting and preparation of much of its seafood?

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paper 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?