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: Why DR Company outsources its harvesting and preparation of seafood.
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_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_forwardExplain 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_forward
- Use 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_forwardBased on your understanding of the case study and further readings, do you think Tiger Brands made use of reverse logistics? • Take a stance• Justify the stance based on theory and the case studyarrow_forward
- Explain 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_forwardHistory 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_forwardSupply Chain Management 1. Is outsourcing a completely negative activity? How does its reputation tie in with insourcing?.arrow_forwardSupply Chain strategy alignment is an important but sometimes overlooked activity. Do you agree with this statement? Explain your answer including a description of just what SC strategy alignment means.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.