chopra_scm5_tif_ch15.doc
Short Description
Download chopra_scm5_tif_ch15.doc...
Description
Supply Chain Management, 5e (Chopra/Meindl) Chapter 15 Sourcing Decisions in a Supply Chain
15.1 True/False Questions 1) Purchasing, also known as procurement, is the process used to rate supplier performance. Answer FA!"# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing %) "ourcing processes include the selection of suppliers, design of supplier contracts, product design colla*oration, procurement of material, and e+aluation of supplier performance. Answer T&# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing ) For man' firms, price has traditionall' *een the onl' dimension that suppliers ha+e *een compared on. Answer T&# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing ) There are man' supplier characteristics other than price, such as lead time, relia*ilit', relia*ilit', 0ualit', and design capa*ilit' that impact the total cost of doing *usiness with a supplier. Answer T&# $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing 5) A good supplier scoring and assessment process will primaril' track performance along the price dimension when e+aluating a supplier. supplier. Answer FA!"# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing
151 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
6) $esign colla*oration ensures that an' design changes are communicated effecti+el' to all parties in+ol+ed with designing and manufacturing the product. Answer T&# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing 7) The goal of procurement is to ena*le orders to *e placed and deli+ered on schedule at the lowest possi*le price. Answer T&# $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing 8) The role of sourcing planning and anal'sis is to anal'9e spending across +arious suppliers and component categories to identif' opportunities for decreasing the total co st. Answer T&# $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different different sourcing strategies including outsourcing and insourcing :) (ost of ;oods "old hen designing a sourcing strateg', it is important for a firm to A) de+elop a process that will procure materials at the lowest possi*le cost. -) maintain a record of all contracts, receipts, issues and other transactions in the e+ent of lawsuits. () ma?imi9e the profita*ilit' of the distri*utors within the suppl' chain. $) *e clear on the factors that ha+e the greatest influence on p erformance and target impro+ement on those areas. Answer $ $iff Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
151% (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
16) >hich of the following is not a factor that must *e considered when scoring and assessing suppliersC A) Quoted price -) &eplenishment lead time () ntime performance $) "uppl' affa*ilit' Answer $ $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 17) >hich of the following is not a factor that must *e considered when scoring and assessing suppliersC A) "uppl' fle?i*ilit' -) "uppl' 0ualit' () 4n*ound transportation cost $) 4nformation instigation capa*ilit' Answer $ $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 18) >hich of the following is not a factor that must *e considered when scoring and assessing suppliersC A) Purchase pricing -) "ales performance () $esign colla*oration capa*ilit' $) #?change rates, ta?es, and duties Answer $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 1:) "upplier performance must *e rated on man' different factors *ecause A) the' impact the total suppl' chain cost. -) the' minimi9e the suppl' chain in+ol+ement. () the' reduce the impact of price. $) the' ma?imi9e the suppl' chain price. Answer A $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 151 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
%3) "coring the performance of suppliers in terms of replenishment lead time thus allows the firm to e+aluate the impact each supplier has on A) the cost of holding c'cle in+entor'. -) the cost of holding replacement in+entor'. () the purchase price of material. $) the cost of holding safet' in+entor'. Answer $ $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %1) ntime performance affects the +aria*ilit' of the lead time, *ecause A) a relia*le supplier has high +aria*ilit' of lead time. -) a relia*le supplier has low +aria*ilit' of lead time. () an unrelia*le supplier has high +aria*ilit' of lead time. $) - and ( Answer $ $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %%) The deli+er' fre0uenc' of a supplier can *e con+erted into the cost of holding A) c'cle in+entor'. -) safet' in+entor'. () *oth c'cle and safet' in+entor'. $) neither c'cle nor safet' in+entor'. Answer ( $iff Topic 15. sing Total (ost to "core and Assess "uppliers !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
151 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
%) "ourcing a product o+erseas ma' ha+e A) higher product cost and will generall' incur a higher in*ound transportation cost. -) higher product cost *ut will generall' incur a lower in*ound transportation cost. () lower product cost and will generall' incur a lower in*ound transportation cost. $) lower product cost *ut will generall' incur a higher in*ound transportation cost. Answer $ $iff 1 Topic 15. sing Total (ost to "core and Assess "uppliers AA("- $'namics of the ;lo*al #conom' !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %) Quantit' discounts lower the unit cost A) *ut tend to increase the re0uired *atch si9e and as a result, reduce the c'cle in+entor'. -) *ut tend to increase the re0uired *atch si9e and as a result the c'cle in+entor'. () and tend to reduce the re0uired *atch si9e and as a result the c'cle in+entor'. $) and tend to reduce the re0uired *atch si9e and as a result, increase the c'cle in+entor'. Answer $iff Topic 15. sing Total (ost to "core and Assess "uppliers AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %5) ;ood information coordination will not result in A) *etter replenishment planning. -) a decrease in the in+entor' carried as well as the sales lost *ecause of lack of a+aila*ilit'. () a decrease in the *ullwhip effect. $) a decrease in the sales lost *ecause of lack of a+aila*ilit'. Answer ( $iff Topic 15. sing Total (ost to "core and Assess "uppliers !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %6) ;ood design colla*oration for manufactura*ilit' and suppl' chain can A) reduce product cost. -) increase re0uired in+entories. () increase transportation cost. $) decrease manufactura*ilit'. Answer A $iff % Topic 15. sing Total (ost to "core and Assess "uppliers AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 1515 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
%7) The +ia*ilit' of suppliers is especiall' important for suppliers who A) pro+ide missioncritical products that would *e eas' to replace. -) pro+ide missioncritical products that would *e difficult to replace. () pro+ide noncritical products that would *e difficult to replace. $) pro+ide noncritical products that would *e eas' to replace. Answer $iff % Topic 15. sing Total (ost to "core and Assess "uppliers AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %8) "upplier performance should *e compared *ased on A) purchase price alone. -) their impact on total cost. () the suppliers 0ualit' of material. $) the a*ilit' of the supplier to coordinate forecasting and planning. Answer $iff Topic 15. sing Total (ost to "core and Assess "uppliers !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %:) "ingle sourcing for a product is used to A) guarantee the supplier sufficient *usiness when the supplier has to make a significant *u'er specific in+estment. -) ensure a degree of competition. () ensure the possi*ilit' of a *ackup should a source fail to deli+er. $) all of the a*o+e Answer A $iff 1 Topic 15. sing Total (ost to "core and Assess "uppliers !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 3) The purpose of ha+ing multiple suppliers for a product is to A) guarantee the supplier sufficient *usiness when the supplier has to make a significant *u'er specific in+estment. -) ensure a degree of competition. () ensure the possi*ilit' of a *ackup should a source fail to deli+er. $) *oth - and ( Answer $ $iff 1 Topic 15.5 "upplier "electionAuctions and @egotiations AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 1516 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
1) 4f each supplier of a firm does not ha+e a somewhat different role, it is +er' likel' that the firms suppl' *ase is A) too large. -) too small. () neither too large or too small. $) *oth too large and too small. Answer A $iff 1 Topic 15.5 "upplier "electionAuctions and @egotiations AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing %) 4f adding a supplier with a uni0ue and +alua*le capa*ilit' does not clearl' add to a firms total cost, the suppl' *ase ma' *e A) too large. -) too small. () neither too large or too small. $) *oth too large and too small. Answer $iff 1 Topic 15.5 "upplier "electionAuctions and @egotiations AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing ) To impro+e o+erall profits, the supplier must design a contract that A) encourages the *u'er to purchase more. -) increases the le+el of product a+aila*ilit'. () re0uires the supplier to share in some of the *u'ers demand uncertaint'. $) all of the a*o+e Answer $ $iff 1 Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
1517 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
) >hich of the following is not a contract that will increase o+erall profits *' making the supplier share some of the *u'ers demand uncertaint'C A) -u'*ack or returns contracts -) Quantit' fle?i*ilit' contracts () &enewal contracts $) &e+enuesharing contracts Answer ( $iff % Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 5) A contract that allows a retailer to return unsold in+entor' up to a specified amount, at an agreed upon price is a A) *u'*ack or returns contract. -) re+enuesharing contract. () 0uantit' fle?i*ilit' contract. $) 0uantit' discount contract. Answer A $iff % Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 6) A contract where the *u'er pa's a minimal amount for each unit purchased from the supplier *ut shares a fraction of the re+enue for each unit sold is A) *u'*ack or returns contract. -) re+enuesharing contract. () 0uantit' fle?i*ilit' contract. $) 0uantit' discount contract. Answer $iff % Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 7) A contract that allows the *u'er to modif' the order hich contract increases the margin for the dealer as sales cross certain le+elsC A) -u'*ack or returns contract -) &e+enuesharing contract () Quantit' fle?i*ilit' contract $) Threshold contracts Answer $ $iff % Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 5) The ke' themes that must *e communicated to suppliers as the' take greater responsi*ilit' for design are A) design for logistics. -) design for manufactura*ilit'. () design for the future. $) A and Answer $ $iff % Topic 15.7 $esign (olla*oration AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 6) >hich of the following is not a ke' principle used in design for manufactura*ilit'C A) Part commonalit' -) "'mmetrical parts () sing catalog parts rather than designing a new part $) All of the a*o+e are principles used in design for manufactura*ilit'. Answer $ $iff % Topic 15.7 $esign (olla*oration !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 7) The procurement process for direct materials should focus on A) impro+ing coordination and +isi*ilit' with the supplier. -) decreasing the transaction cost for each order. () consolidation of orders to take ad+antage of economies of scale and 0uantit' discounts. $) all of the a*o+e Answer A $iff % Topic 15.8 The Procurement Process AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 15%1 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
8) The procurement process for indirect materials should focus on A) impro+ing coordination and +isi*ilit' with the supplier. -) decreasing the transaction cost for each order. () consolidation of orders to take ad+antage of economies of scale and 0uantit' discounts. $) all of the a*o+e Answer $iff % Topic 15.8 The Procurement Process AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing :) The procurement process for *oth direct and indirect materials should work on A) impro+ing coordination and +isi*ilit' with the supplier. -) decreasing the transaction cost for each order. () consolidation of orders to take ad+antage of economies of scale and 0uantit' discounts. $) all of the a*o+e Answer ( $iff % Topic 15.8 The Procurement Process AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 53) >hich of the following is a crossfunctional dri+er of sourcingC A) Transportation -) 4n+entor' () "ourcing $) Faciltities Answer ( $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 51) >hich of the following is a traditional logistics dri+er of sourcingC A) Pricing -) 4n+entor' () "ourcing $) 4nformation Answer $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 15%% (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
5%) The decision to ha+e a third part' perform a suppl' chain function is called A) insourcing. -) outsourcing. () offshoring. $) onshoring. Answer $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 5) The decision to mo+e a production facilit' outside of domestic *oundaries and still maintain ownership is called A) insourcing. -) outsourcing. () offshoring. $) onshoring. Answer ( $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 5) There are +arious mechanisms that third parties can use to grow the suppl' chain surplus. >hich of the following is not one of theseC A) (apacit' aggregation -) >arehousing decentrali9ation () 4n+entor' aggregation $) >arehouse aggregation Answer $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15% (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
55) An intermediar' can increase the suppl' chain surplus *' decreasing the num*er of relationships re0uired *etween multiple *u'ers and sellers. This is called A) capacit' aggregation. -) in+entor' aggregation. () warehouse aggregation. $) relationship aggregation. Answer $ $iff % Topic 15.1 The &ole of "ourcing in a "uppl' (hain !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 56) The main risks of mo+ing functions to a third part' would not include A) rising fuel costs. -) underestimation of the cost of coordination. () reduced customer/supplier contact. $) loss of internal capa*ilit'. Answer A $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 57) sing a third part' re0uires a firm to share demand information and in some cases intellectual propert'. This risk would *e descri*ed as A) leakage of sensiti+e data and information. -) underestimation of the cost of coordination. () reduced customer/supplier contact. $) loss of internal capa*ilit'. Answer A $iff 1 Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- Anal'tic "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15% (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
58) (onsidering the factors influencing total cost and supplier performance, which of the following is the !#A"T 0uantifia*le factorC A) "upplier price -) "upplier terms () "upport $) >arehousing cost Answer ( $iff % Topic 15. sing Total (ost to "core and Assess "uppliers !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 15. #ssa' Questions 1) >hat are some of the *enefits of effecti+e sourcing decisionsC Answer #ffecti+e sourcing processes within a firm can impro+e profits for the firm and total suppl' chain surplus in a +ariet' of wa's. 4t is important that the dri+ers of impro+ed profits *e clearl' identified when making sourcing decisions. "ome o f the *enefits from effecti+e sourcing decisions are the following D -etter economies of scale can *e achie+ed if orders within a firm are aggregated. D Bore efficient procurement transactions can significantl' reduce the o+erall cost of pu rchasing. This is most important for items where a large num*er of low+alue transactions occur. D $esign colla*oration can result in products that are easier to manufacture and distri*ute, resulting in lower o+erall costs. This factor is most important for supplier products that contri*ute a significant amount to product cost an d +alue. D ;ood procurement processes can facilitate coordination with the supplier and impro+e forecasting and planning. -etter coordination lowers in+entories and impro+es the matching of suppl' and demand. D Appropriate supplier contracts can allow for the sharing of risk, resulting in higher profits for *oth the supplier and the *u'er. D Firms can achie+e a lower purchase price *' increasing competition through the use of auctions. $iff Topic 15.1 The &ole of "ourcing in a "uppl' (hain AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15%5 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
%) >hat factors should *e considered when making sourcing decisionsC Answer >hen designing a sourcing strateg', it is important for a firm to *e clear on the factors that ha+e the greatest influence on performance and target impro+ement on those areas. For e?ample, if most of the spending for a firm is on materials with onl' a few high+alue transactions, impro+ing the efficienc' of procurement transactions will pro+ide little +alue, whereas impro+ing design colla*oration and coordination with the supplier will pro+ide significant +alue. 4n contrast, when sourcing items with man' low+alue transactions, increasing the efficienc' of procurement transactions will *e +er' +alua*le. >hen scoring and assessing suppliers, the following factors other than 0uoted price must *e considered D &eplenishment lead time D ntime performance D "uppl' fle?i*ilit' D $eli+er' fre0uenc'/minimum lot si9e D "uppl' 0ualit' D 4n*ound transportation cost D Pricing terms D 4nformation coordination capa*ilit' D $esign colla*oration capa*ilit' D #?change rates, ta?es, and duties D "upplier +ia*ilit' "upplier performance must *e rated on each of these factors *ecause the' impact the total suppl' chain cost. $iff Topic 15.% 4nouse or utsource AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing ) >h' should replenishment lead time *e considered in supplier selection decisionsC Answer As the replenishment lead time from a supplier grows, the amount of safet' in+entor' that needs to *e held *' the *u'er also grows proportional to the s0uare root of the replenishment lead time. !ead time performance *' a supplier can directl' *e translated into the re0uired safet' in+entor'. "coring the performance of suppliers in terms of replenishment lead time thus allows the firm to e+aluate the impact each supplier has on the cost of holding safet' in+entor'. $iff % Topic 15. sing Total (ost to "core and Assess "uppliers AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15%6 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
) >h' should ontime performance *e considered in supplier selection d ecisionsC Answer ntime performance affects the +aria*ilit' of the lead time. A relia*le supplier has low +aria*ilit' of lead time, whereas an unrelia*le supplier has high +aria*ilit'. As the +aria*ilit' of lead time grows, the re0uired safet' in+entor' at the firm grows +er' rapidl'. ntime performance can *e translated into lead time +aria*ilit', which is con+erted to re0uired safet' in+entor'. A firm can e+aluate the impact of poor ontime performance *' a supplier on the cost of holding safet' in+entor'. $iff % Topic 15. sing Total (ost to "core and Assess "uppliers AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 5) >h' should suppl' 0ualit' *e considered in supplier selection decisionsC Answer A worsening of suppl' 0ualit' increases the +aria*ilit' of the suppl' of components a+aila*le to a firm. Qualit' affects the lead time taken *' the supplier to complete the replenishment order and also the +aria*ilit' of this lead time * ecause followup orders often need to *e fulfilled to replace defecti+e products. As a result, the firm will ha+e to carr' more safet' in+entor' from a low0ualit' supplier as compared to a high0ualit' supplier. nce a relationship *etween suppl' 0ualit', lead time, and lead time +aria*ilit' is esta*lished, each suppliers 0ualit' le+el can *e con+erted to the re0uired safet' in+entor' and the associated holding cost. The component 0ualit' also impacts customer satisfaction and product cost *eca use of rework, lost material, and the cost of inspection. $iff % Topic 15.6 (ontracts, &isk "haring, and "uppl' (hain Performance AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 6) >h' should design colla*oration capa*ilit' *e considered in supplier selection decisionsC Answer ;i+en that a large part of product cost is fi?ed at design, colla*oration capa*ilit' of a supplier is significant. ;ood design colla*oration for manufactura*ilit' and suppl' chain can also decrease re0uired in+entories and transportation cost. As manufacturers are increasingl' outsourcing *oth the design and manufacture of components, their a*ilit' to coordinate design across man' suppliers is critical to the ultimate success of the product and the speed of introduction. As a result, design colla*oration capa*ilit' of suppliers is *ecoming increasingl' important. $iff % Topic 15.7 $esign (olla*oration AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15%7 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
7) ow does a firm know whether it has the correct num*er of suppliersC Answer A good test of whether a firm has the right num*er of suppliers is to anal'9e what impact deleting or adding a supplier will ha+e. nless each supplier has a somewhat different role, it is +er' likel' that the suppl' *ase is too large. 4n contrast, unless adding a supplier with a uni0ue and +alua*le capa*ilit' clearl' adds to total cost, the suppl' *ase ma' *e too small. $iff % Topic 15.5 "upplier "electionAuctions and @egotiations AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing 8) >hat issues need to *e considered when e+aluating capa*ilit' for design colla*orationC Answer Ee' themes that must *e communicated to suppliers as the' take greater responsi*ilit' for design are design for logistics and design for manufactura*ilit'. $esign for logistics attempts to reduce transportation, handling, and in+entor' costs during distri*ution *' taking appropriate actions during design. To reduce transportation and handling costs, the manufacturer must con+e' e?pected order si9es from retailers and the end consumer to the designer. Packages can then *e designed such that transportation cost is lowered and handling is minimi9ed. To reduce transportation cost, packaging is kept as compact as possi*le and is also designed to ensure eas' stacking. To reduce handling costs, package si9es are designed to minimi9e the need to *reak open a pack to fulfill an order. To reduce in+entor' costs, the primar' approach is to design the product for postponement and mass customi9ation. Postponement strategies aim to design a product and production process such that features that differentiate end products are introduced late in the manufacturing phase. $esign for manufactura*ilit' attempts to design products for ease of manufacture. "ome of the ke' principles used include part commonalit', eliminating righthand and lefthand parts, designing s'mmetrical parts, com*ining parts, using catalog parts rather than designing a new part, and designing parts to pro+ide access for other parts and tools. $iff % Topic 15.5 "upplier "electionAuctions and @egotiations AA("- &eflecti+e Thinking "kills !earning utcome (ompare and contrast different sourcing strategies including outsourcing and insourcing
15%8 (op'right 2 %31 Pearson #ducation, 4nc. pu*lishing as Prentice all
View more...
Comments
