Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN: 9781305809789
Author: MONCZKA
Publisher: Cengage
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Chapter C, Problem 1.8A
Summary Introduction

To explain: The reason Company AI might look to reduce the lead times on the purchased materials and components.

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.

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