Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN: 9781285869681
Author: Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher: Cengage Learning
bartleby

Concept explainers

bartleby

Videos

Textbook Question
Book Icon
Chapter C, Problem 1.1A

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.

Chapter C, Problem 1.1A, Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each , example  1

At this point, Kevin O’Donnell, another procurement manager, entered the room.

Chapter C, Problem 1.1A, Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each , example  2

Chapter C, Problem 1.1A, Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each , example  3

What parts of the supply chain are most closely involved with the situation in this case? What is the responsibility of each part in order to maintain a smooth flow of material?

Expert Solution & Answer
Check Mark
Summary Introduction

To explain: The part of the supply chain that is most closely involved in this situation and the responsibility of each part to maintain the smooth flow of materials.

Case summary:

Person SD and Person DM are the procurement managers at Company AI. They sat with each other and were reviewing the poor performance report from a key supplier Company FT. The report was directed towards the deteriorating quality of Company FT on the quality of material and on-time delivery.

Material quality and on-time delivery:

The quality of the materials plays an important role in the success of an organization. The quality of the materials plays a vital role in product quality. The on-time delivery of products is the delivery of products at the right time which makes it important for an organization to be competitive.

Explanation of Solution

The components of materials management and production are involved in this scenario. These two components are broken down in the supply chain in this scenario. The job of the materials management is to forecast the needed supplies and other materials and passing off that information to the suppliers.

Production is responsible for developing and maintaining a good line of communication-based on demand. The production team will inform on the need for any supplies to the management. The management will have to make a decision on the supplies based on the information present on hand.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
By selecting Cigna Accredo pharmacy that i identify in my resand compare the current feedback system against the “Characteristics of a Good Multiple Source Feedback Systems” described in section 8-3-3.  What can be improved?  As a consultant, what recommendations would you make?
Scenario You have been given a task to create a demand forecast for the second year of sales of a premium outdoor grill. Accurate forecasts are important for many reasons, including for the company to ensure they have the materials they need to create the products required in a certain period of time. Your objective is to minimize the forecast error, which will be measured using the Mean Absolute Percentage Error (MAPE) with a goal of being below 25%. You have historical monthly sales data for the past year and access to software that provides forecasts based on five different forecasting techniques (Naïve, 3-Month Moving Average, Exponential Smoothing for .2, Exponential Smooth for .5, and Seasonal) to help determine the best forecast for that particular month. Based on the given data, you will identify trends and patterns to create a more accurate forecast. Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next…
Approach Consider the previous month's forecast to identify which technique is most effective. Use that to forecast the next month. Remember to select the forecasting technique that produces the forecast error nearest to zero. For example: a. Naïve Forecast is 230 and the Forecast Error is -15. b. 3-Month Moving Forecast is 290 and the Forecast Error is -75. c. Exponential Smoothing Forecast for .2 is 308 and the Forecast Error is -93. d. Exponential Smoothing Forecast for .5 is 279 and the Forecast Error is -64. e. Seasonal Forecast is 297 and the Forecast Error is -82. The forecast for the next month would be 230 as the Naïve Forecast had the Forecast Error closest to zero with a -15. This forecasting technique was the best performing technique for that month. You do not need to do any external analysis-the forecast error for each strategy is already calculated for you in the tables below. Naïve Month Period Actual Demand Naïve Forecast Error 3- Month Moving Forecast 3- Month Moving…
Knowledge Booster
Background pattern image
Operations Management
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Purchasing and Supply Chain Management
Operations Management
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Cengage Learning
Inventory Management | Concepts, Examples and Solved Problems; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=2n9NLZTIlz8;License: Standard YouTube License, CC-BY