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Cyberjaya University College of Medical Sciences

AMS 5123 MARKETING MANAGEMENT

Discussion 5

Alpha Stampings

Alpha Stampings Inc. produces 14 metal stampings for the automotive industry. Due to industrydesign changes and consumer demands, for the next financial year, six of those stampings willrequire a slight change: two will have an extra hole punched through the side, two will requirean extra plating process, and two will require an additional weld operation. In the meantime,purchasing agent Richard Koehl has been asked to reduce the number of Alpha's steel suppliersin an effort to cut costs. After obtaining updated price quotations and steel samples from hiscurrent suppliers, Richard faced a dilemma. Until now, he had selected his suppliers based onquality and price, but the major consideration had been the type of steel required and thespecialized production processes of his respective suppliers. Not all of Alpha's suppliers couldproduce the exact grades of steel needed; some suppliers were better at producing certain typesof steel than others. Richard contacted several employees at Alpha who had worked with thevarious types of steel in the past. The quality control manager and line inspector, for example,could help to determine which suppliers had the capabilities of producing specific types of steel.The production control manager could provide input regarding which types of steel worked bestin which presses. The warehouse foreman gave inputs regarding how long various types of steelcould be held in inventory before rust spots began to form on their surfaces. Each personcontributed the necessary information to help Richard in making his decision.

Questions

a. Besides the factors mentioned in the case, discuss other considerations that Richard maywant to consider for supplier selections. Justify your answers.

b. Discuss the role of the following individuals in the case:

i. Richard Koehl

ii. Quality Control Manager and Line Inspector

iii. Production Control Manager

iv. Warehouse Foreman

c. If you are Richard, will you consider maintaining existing number of suppliers or reduce asspecified by the management of Alpha Stampings. Support your answer from sustainablemarketing perspective