APPLE PIE LTD:

Apple Pie Ltd employs a total quality management program and manufactures 12 different types of pie from chicken and leek to vegetarian.

The directors of Apple Pie are proud of their products, and always attempt to maintain a high quality of inputs at a reasonable price.

Each pie has four main elements:

i. aluminium foil case;

ii. pastry shell made mainly from flour and water;

iii. meat and/or vegetable filling; and

iv. thin plastic wrapping.

The products are obtained as follows:

The aluminium is obtained from a single supplier of metal related products. There are few suppliers in the industry resulting from fall in demand for aluminium related products following increased use of plastics.

The flour for the pastry shell is sourced from flour millers in four different countries one source of supply is not feasible because harvests occur at different times and Apple Pie cannot store sufficient flour from one harvest for a years production.

Obtaining meat and vegetables is difficult due to the large number of suppliers located in many different countries. Recently, Apple Pie obtained significant cost savings by delegating sourcing of these items to a specialist third party.

Plastic wrapping is obtained either directly from the manufacturer or via an internet site specialising in selling surplus wrapping from government and other sources.

Question 3 (30 marks)

a) Discuss the sourcing strategies adopted by Apple Pie Ltd. (15 marks) (350 words)

b) Evaluate the effectiveness of those strategies for maintaining a constant and high quality supply of inputs. Your answer should also include recommendations for changes you consider necessary. (15 marks) (350 words)