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Supply Chain Management Procurement Case PROBLEM STATEMENT: A SCM Manager of a Beverage Manufacturing company is required to come up with the least landed
Supply Chain Management Procurement Case PROBLEM STATEMENT: A SCM Manager of a Beverage Manufacturing company is required to come up with the least landed cost for the demand requirements of certain SKU in one region in the Philippines. There are three (3) sources of major raw materials abroad. With the additional data given on the attached sheet, please provide your sourcing plan. There are also 3 Plants to be considered in producing the product namely Fast, Furious and Speed. FORECAST: Sales dept is projecting a monthly volume requirements of region elective of 2400k cases of product X. Due to forecast inaccuracies, sales is requiring a 3 days and 7 days minimum and maximum inventory level at sales offices respectively. IN BOUND PROCUREMENT DATA: Major Raw Mat - Raw Matx accounts for 75% of total RM Cost 25% of other raw mat cost are source locally and have negligible impact 1000kgs of rm x per 1500cases product X Quality of three source is the same FTH = Ph0.50/kg/km Holding cost is 40% per annum Landed cost/ton excluding tariff 1USD =Ph45 Ordering cost is Ph25k/order Payment upon placement of P.O. To Suppliers Raw Mat X Landed Cost/Ton @ Phil Tariff LC + Source Port (USD) (%) Tariff Lead Time Suppliers Reliability Asia 30.88 3 31.81 23 Days Europe 27.62 15 31.74 90 Days USA 27.52 15 31.63 60 Days Ave 7 Days Delay / Shipment Zero Delay Zero Delay Solve for the following: 1. Assess which of the following suppliers to source out the Materials 2. Assess to which plant to produce the product of the business 3. Solve for the Total Cost of Sourcing the Material. 4. Create a Decision Matrix on which supplier to choose. 5. Create a decision matrix on which plant to produce. 6. Submit a Soft Copy in a Case Study Format together with a PowerPoint presentation on the case.
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