Saturday, January 4, 2020

Supply For A Continuous Supply - 1134 Words

cannot ensure a continuous supply for the product UV4 from its sourcing country, China, because the Chinese governmental ban on the use of UV4’s raw material. He has to make a plan by the next day to address the short-term shortage of supply. Associated Issue The higher level of issues that should be taken into account are: global sourcing; strategic sourcing; supplier management; cost analysis; supplier relations and risk management. Issue Analysis Major of facts †¢ The company had annual sales of $140 million, employed 400 people in offices around the world †¢ The crystal quartz sleeve that acted as an ultratransparent barrier between the water and the UV lamp are very expensive and difficult to procure †¢ The company had traditionally†¦show more content†¦- Because this purchase from AMS is 30% of total sleeve cost, the total spend for this commodity was approximately $1.7 million (510,000/0.3) - Trojan’s piece price cost from Juntao was 30% of its cost from AMS, which is approximately $15.30 per sleeve or $153,000 per year. - After the ban rule, is Juntao import raw material will lead to a cost of $28 per sleeves, and $280,000 per year. - The $77 cost from AMS is approximately at 50% premium. According to the 80/20 allocation plan, the annual cost would be $154,000(2000*77). Purchases from Juntao would be $122,400 for 8,000 units, which is a total cost of $276,400 – a net reduction of 46% in costs. - If Trojan buy 100% from AMS, its costs would be $770,000, a premium of $260,000. - Based on annual revenues of $140 million and unit sales of 500 to 600, the average unit sold has a value of $233,000 to $280,000. Alternative solutions 1. First, Juntao imports raw materials. The costs would increase by approximately $127,000(28-15.3=12.7, 12.7*10000). Pros: It might be a long-term solution, because Trojan want to keep its LCS and global sourcing strategy. Cons: It will not address the short-term supply shortage problem because import material is available in next month. This option is somehow risky, because we don’t know if Juntao has ability to secure appropriateShow MoreRelatedSupply Chain Of A Continuous Replenishment System Essay1712 Words   |  7 PagesReorder point control is part of a continuous replenishment system that orders stock when a pre-determined level of inventory is reached. This system determines when to order not how much. Pre-determined levels are calculated using a forecast amount and safety stock margin and set as minimums and maximum quantities. The theory behind this hybrid or push-pull strategy is that a pull system is used in the first instance to achieve economies of scale and a pull system is used secondary in order toRead MoreCustomer Service and Online Delivery Systems1122 Words   |  5 Pagesmay have a great product, but if it is not delivered to the customer when they need it, the customer will move to the competitor and the product will fail. Organizations must recognize the importance of their supply chain and ensure that the right solutions and tools are in place. The supply chain is a system/network that includes inventory, distribution and transportation functions and consists of raw material suppliers, producers, storage warehouses, distribution centers and retailers. The traditionalRead MoreToyota Learning Principles and the V4L Framework1218 Words   |  5 PagesToyota is well known for its approach to problem solving and continuous improvement. Articles by practitioners, researchers, and participants have made the tools and techniques of continuous improvement familiar to every business executive. For example, phrases such as andon, heijunka, and kanban have become part of the day-to-day vocabulary of managers. In an insightful commentary on these tools and techniques, Jeffrey Liker writes that Toyota’s success goes beyond these tools and techniques toRead MoreGovernment Intervention in Agriculture Industry in Indonesia Essay532 Words   |  3 Pagesfruits and vegetables to increase due to shortage of supply. Not only that, ineq uality in distribution of income by farmers has take place due to lack of capital acess (TheJakartaPost, 2010). The market economy requires institution such as government to implement policies and making decisions to maintain market and avoid market failures like monopoly and negative externalities. Government intervention such as decision to guarantee continuous supplies of horticultural products will not only complementRead MoreThe Effects Of Redesigning The New Zealand Electricity Market Case Study703 Words   |  3 Pagesredesigning the New Zealand Electricity Market, so that offers are in the format of a continuous piecewise-linear (PWL) function, rather than the current discontinuous step function. In particular, we wish to consider whether the using PWL supply offers result in less volatile electricity price, and smoother, monotonic changes in prices when demand fluctuates. Issues with Current Supply Offers Currently, supply offers submitted by generators in the New Zealand Electricity Market are in the form ofRead MoreMarketing Analysis : Amazon.com Inc.1405 Words   |  6 Pagesincome of the next 10 largest online stores Amazon claims that whatever the customer wants is just a mouse click away and attempts to deliver their products at the cheapest price in the market place. In 2014 Amazon was ranked number 3 in the Gartner Supply Chain Top 25 for the third year running (Aronow, Horman, Burke, Niles, Romano 2015). Amazon’s Strength, Weaknesses, Opportunity, and Threat (SWOT) Analysis provided by Datamonitor.com cites Amazon’s strengths as largest online retailerRead MoreLean Supply Chain Is A Catalyst For Enhancing Product Quality And Business Performance1375 Words   |  6 PagesIn a constantly evolving market, companies must maintain the mindset of continuous improvement and they must focus on speed, efficiency and customer value to be competitive (Cudney Elrod, 2011). Applying lean concepts goes beyond having a better product than competitors; it’s the supply chains ability to create end-to-end value for the organization and customer. Therefore, for the supply chain to provide organizational success collaboration with all users is critical because effective communicationRead MoreUsing Jit As An Operational Improvement1117 Words   |  5 Pagesstage in a production chain. In other words, using a JIT supply chain system saves storage space by minimising stock o n the premises. (Paton et al., 2011). This report makes an explorative study of the BMW’s supply chain which uses JIT as an operational improvement. The automobile supply chain needs an efficient supplier, a powerful production line, and distribution network along. The quality and delivery of supplies is a critical part of supply chains and the suppliers needs to be evaluated properlyRead MoreIs It Wise For Sandvik For Decouple The Forward And Reverse Supply Chains?1331 Words   |  6 PagesWas it wise for Sandvik to decouple the forward and reverse supply chains? How could the reverse supply chain be improved and could the firm potentially go so far as to integrate the two so that reverse logistics would not be such a separate process? In reverse logistics, the design, control, and operation of a recovery value system will reflect the whole life cycle of a product. This is the concept of closed-loop supply chains, in which zero-waste is achieved in the â€Å"forward flows of materialsRead MoreComponents Of An Integrated Logistics System930 Words   |  4 Pagesand handling Products that flow through the supply chain via transportation and warehousing are contained within packaging which protects and identifies the contents. The package is moved through the supply chain via the handling system, hence effective packaging and handling are important components of an integrated logistics system (Bowersox et al. 2013). 5.1 Packaging There are many different types and sizes of packages to move goods through the supply chain. The selection and coordination of packaging

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.