Most of our work is for large food manufacturers who place orders for our packaging materials well
Question:
‘Most of our work is for large food manufacturers who place orders for our packaging materials well in advance. The only thing that they get upset about is if we miss a delivery and they run short of packaging on their own production lines. Sure, there are changes to the design of the packaging, but this happens rarely and we always get plenty of notice. Increasingly, they are getting tough on negotiating year-on-year price reductions from us but they are broadly happy with our performance because of our exceptional quality. This new line of business with pharmaceutical companies is somewhat different. We can charge higher margins but when they place an order they want us to move from receiving their designs to delivering the packaging as quickly as possible. This sometimes involves air freighting our packing out to customers.’
Draw polar diagrams that contrast the two types of business that this packaging company is engaged in.
Step by Step Answer:
Operations Management
ISBN: 9780273708476
5th Edition
Authors: Nigel Slack, Stuart Chambers, Robert Johnston