Question
This scenario concerns ACER Italy, one of the leading Notebook manufacturer in the world. The problem cropped up in March 2020, just one year after
This scenario concerns ACER Italy, one of the leading Notebook manufacturer in the world. The problem cropped up in March 2020, just one year after introducing their starte-of-the-art notebook. The pandemic started in Jamaica and online teaching began.
In that brief time, sales topped more than 50,000 units in Jamaica, valued at $2.25 million. However, ACER Italy was running into some severe inventory problems, particularly with service to its Jamaican customer.
Production took place in Buaton, China, then shipped to the company's headquarters in Laminate, Italy and then to Jamaica by water. Unfortunately, that resulted in long lead times, making it challenging for ACER Jamaica to forecast the demand accurately.
ACER found itself running short of supply for a specific customer in Jamaica, to meet the online class schedule. While at the same time, they rented space in the Spring Plaza in Half-Way-Tree, to distribute the product because it is a central area and adequate to handle the traffic.
The matter was further compounded with slowing down of the Customs Officers on the port and the haulage contractor because of the Covid-19 pandemic.
Based on the above scenario, Please answer the below questions.
Explain whether ACER Italy should devise a complicated new methodology for protecting the safety stock.
Discuss whether ACER Italy could set up an assembly plant in Jamaica, an expensive move that scale volume might not justify.
Discuss any alternative method of shipping the product Jamaica, that ACER Italy may accept.
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