Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What are Guillaume Laverdure, chief operating officer at Medicom Group ( Medicom ) , was evaluating a potential investment in a new facility that would
What are
Guillaume Laverdure, chief operating officer at Medicom Group Medicom was evaluating a potential investment in a new facility that would manufacture meltflown propylene meltblown a key raw material for surgical and respirator masks. It was February and the previous months had been eventful for the company, one of the largest suppliers of medical masks in the world, as the Covid pandemic had led to a staggering increase in demand for its products. Raw material supply shortages had been a major problem during and Guillaume was exploring opportunities that would make the company's supply chain more resilient. Guillaume was scheduled to meet with Medicom's chief executive officer, Ronald Reuben, the following week to review alternatives and to make a decision regarding meltblown supply.
Objectives:
Analyze the financial, operational, and strategic implications of insourcing production of a key raw material
Understand the implications of investing in capacity for a capitalintensive business
Distinguish between supply chain resilience and supply chain agility
Identify potential sources of supply chain risks
Prepare a plan that aligns operations and corporate strategies
Discussion Questions:
In the role of Guillaume Laverdure, what recommendations would you make to Ronald Reuber and why? Support your recommendations with appropriate analysis and an implementation plan.
What is a reasonable payback period for this investment?
How does vertical integration allow Medicom to foster product and process innovation?
How will Medicom's suppliers react if the company builds a plant to manufacture meltblown?
What is the difference between supply chain agility and supply chain resilience? Can companie develop both capabilities simultaneously?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started