A newly built 1000 bedded hospital wants to purchase equipment to the Radiology and Blood bank departments. But the management of the hospital was in a dilemma whether they should buy all the necessary equipment from one supplier or they should opt multiple suppliers. Considering the above situation if you were the decision maker, what would your decision be? Explain with reference to Sourcing concept.

A newly built 1000 bedded hospital wants to purchase equipment to the Radiology and Blood bank departments. But the management of the hospital was in a dilemma whether they should buy all the necessary equipment from one supplier or they should opt multiple suppliers. Considering the above situation if you were the decision maker, what would your decision be? Explain with reference to Sourcing concept.

Contemporary Marketing

18th Edition

ISBN:9780357033777

Author:Louis E. Boone, David L. Kurtz

Publisher:Louis E. Boone, David L. Kurtz

Chapter15: Distribution Channels And Supply Chain Management

Section15.7: Accomplishing The Priorities Of A Supply Chain

Problem 1LO

See similar textbooks

Similar questions

Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. Is Ben Gibson acting legally? Is he acting ethically? Why or why not?
Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing expenditures for packaging materials with Jeff Joyner. Ben was particularly disturbed about the amount spent on corrugated boxes purchased from Southeastern Corrugated. Ben said, I dont like the salesman from that company. He comes around here acting like he owns the place. He loves to tell us about his fancy car, house, and vacations. It seems to me he must be making too much money off of us! Jeff responded that he heard Southeastern Corrugated was going to ask for a price increase to cover the rising costs of raw material paper stock. Jeff further stated that Southeastern would probably ask for more than what was justified simply from rising paper stock costs. After the meeting, Ben decided he had heard enough. After all, he prided himself on being a results-oriented manager. There was no way he was going to allow that salesman to keep taking advantage of Coastal Products. Ben called Jeff and told him it was time to rebid the corrugated contract before Southeastern came in with a price increase request. Who did Jeff know that might be interested in the business? Jeff replied he had several companies in mind to include in the bidding process. These companies would surely come in at a lower price, partly because they used lower-grade boxes that would probably work well enough in Coastal Products process. Jeff also explained that these suppliers were not serious contenders for the business. Their purpose was to create competition with the bids. Ben told Jeff to make sure that Southeastern was well aware that these new suppliers were bidding on the contract. He also said to make sure the suppliers knew that price was going to be the determining factor in this quote, because he considered corrugated boxes to be a standard industry item. As the Marketing Manager for Southeastern Corrugated, what would you do upon receiving the request for quotation from Coastal Products?
Q1: You are a distribution center manager; you understand distribution facilities would provide a variety of services according to the requirements of the supply chain. Your manager requested you to do the training for your team, it should discuss the primary functions of DC, what are they? Q2: When goods need to be transported, the supply chain manager can choose from five modes of transportation: truck, rail, air, water and pipeline. What are the main functions, advantages and disadvantages of each basic mode? Giving goods example under each mode.
Prepare a short research paper explaining how to source computer chips which will be used in the manufacturing of the computers for your company who is planning to build them in China. Be sure to explain the entire sourcing and qualification process necessary in developing the entire Supply Chain. Explain the key factors involved and how they will impact your operations. Identify all companies you will be considering as vendors and explain why their selection. The paper should be double spaced in MLA format and contain at least 2 academic references not including textbook which can be used as well and as many websites needed, all will need to be MLA format on a separate reference page.
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 200,000 parts in year 1; 300,000 in year 2; and 500,000 in year 3. Shipping and handling of parts from the supplier’s factory is estimated at $0.01 per unit. Additional inventory handling charges should amount to $0.005 per unit. Finally, administrative costs are estimated at $20 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.05 per unit. Direct labor is estimated at $0.03 per unit plus a 50 percent surcharge for benefits; indirect labor is estimated at $0.011 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $30,000. Finally, management has insisted that overhead be allocated if the parts are made in-house…
Describe the supply chain for your university or college.Who are the suppliers, producers, and distributors in thissupply chain? Are there different supplier tiers? Howwould you evaluate this supply chain? Does inventory evenexist, and if it does, what form does it take?
A sourcing strategy is essentially a business case for an organisation to determine an optimal approach to procure resources. AusMed which manufactures medical ventilators, wants to procure a heating tube which is a critical component of humidification equipment. In comparison to the value of the ventilator, the heating tube cost less. Moreover, there are very few suppliers in the world that can supply the heating tubes. Outline the steps involved in the sourcing the heating tube? Discuss what sourcing strategy that AusMed needs to adopt while procuring heating tube?
One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently being assembled at your plant. The supplier has bid $0.10 per part, given a forecast you provided of 300,000 parts in year 1; 500,000 in year 2; and 700,000 in year 3. Shipping and handling of parts from the supplier's factory is estimated at $0.03 per unit. Additional inventory handling charges should amount to $0.004 per unit. Finally, administrative costs are estimated at $20 per month. Although your plant is able to continue producing the part, the plant would need to invest in another molding machine, which would cost $10,000. Direct materials can be purchased for $0.04 per unit. Direct labor is estimated at $0.05 per unit for wages plus a 50 percent surcharge for benefits and, indirect labor is estimated at $0.013 per unit plus 50 percent benefits. Up-front engineering and design costs will amount to $40,000. Finally, management has insisted that overhead be allocated if the parts are…
Choose the supply chain of a company of your choice and make observations and recommendations on the following. · The company’s products/services and its supply chain. · Benefits of managing the supply chain effectively for the company. · Some of the supplier development practices followed by the company. · Sustainable supply chain initiatives if any. · Challenges in supply chain management at the time of economic crisis. You may use figures, charts etc. where necessary to further elaborate the content.
Following are some of the information on demand and costs of a mobile phone manufacturer: Monthly Sales for previous year were 10,000 Mobile Phones. Overall Market has grown at 15% from the previous year. The company uses a third-party storage solution for keeping its inventory. The charges are Rs. 100/unit. For procuring the raw material company relies on a contractor which provides them a one stop solution and charges Rs. 3000 per order. The actual cost of the raw material is approximately 7000/unit. Using the above given information answer the following questions? What is the Economic Order Quantity for the company? If a working year is 300 days find out how many orders the company will place for the current year and what would the gap between two orders? What will be the total cost of inventory policy for the company? If the delivery lead time for receiving the order is 20 days what should be the reorder point for the company?
As a supply chain and logistics management student, you have completed key aspects of thediscipline throughout your qualification, namely, purchasing management, supplier relationshipmanagement, warehouse management and strategic supply chain management.This question requires you to reflect on your knowledge and understanding of supply chainmanagement. You are required to write a one-page report where you reflect on:• Which areas of this module did you find most interesting and challenging to learn about?Why?• If the procurement process for inventory is not ethically done, what do you think would bethe impact on organisations?• Do you think the individual responsible for managing inventory i.e., performing ABC analysesor tracking inventory through a warehouse needs to be analytical? Why or why not?• Would using artificial intelligence through computer programs give a non-analytical personan advantage?• Could a career in inventory management be the future for you? Why or why not?