Supply Chain and Business Strategy
Put together a PowerPoint presentation with 12–15
slides that can be used for both internal purposes and when you meet with all of
your vendors to kick off a vendor certification program. To earn full credit on
the PowerPoint, you must use colored slides, clip art or charts, or photos on
each slide to make them eye-appealing, along with 150–200
words of speaker notes for each slide, explaining the slide’s content. Slides
must not be covered with commentary; that is what the speaker notes are
for.
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- The company is currently assessing a make versus buy decision.
- The company currently makes product line “A” using proprietary technology.
Its variable cost/unit is $10, and its fixed cost allocation of overhead based
on producing 10,000/yr is $20/unit, for a total standard cost of $30/unit. - The company also makes 3 other completely different and separate product
lines on different equipment. - The company has a quote from an outside vendor for this product A, for
$18/unit.
Assignment:
- Given the data presented, what criteria would you use to evaluate the make
versus buy decision that faces you? - As a company’s managers create the optimum supply chain, there are many
criteria that must be weighed, and in some cases, trade-offs are made. List at
least 5 trade-off type decisions that the firm’s managers would have to make to
establish the optimum supply chain. Include why it is a trade-off and the added
information that you would need to actually make the best choice.
The following is an example of a trade-off:
- Should the manufacturing plant be located closer to its raw material vendors
or its customer base? Why? - Make up a checklist that a company’s vendor certification team should fill
out when it visits a vendor prior to certifying them. What are the pros and cons
of installing a vendor certification program
