Write a commentary on the figures presented in Table 1 concerning the supply chain management. Your comments must include a review of the performance of each supplier and the activities identified in Table 1. You need to suggest, and explain, at least THREE possible ways to better manage the relevant supplier activities. You may apply techniques such as EOQ, JIT and ABM in your answer. (Max 500 words)

There are three species of timber used in the production and the supply is subject to seasonal fluctuation. Weather is the most important factor affecting the supply. However, certain suppliers do stock up a limited amount of timber in order to meet customers' demand. Although Jimbun always buys certain species from specific suppliers, he will switch suppliers when he cannot get the quantity needed from the original supplier. The purchase price is also a significant consideration since Jimbun is responsible for purchase price variances on timber material used. Table 1. Supplier's Performance Index ATBR BTBR CTBR Cost per unit of activity driver $ 100 No. of activities 10 No. of activities 0 $ 1 000 S No. of activities 2 $ 0 200 48 60 Activity Rework due to poor quality material Order material Receive order Inspect order Return material Pay supplier Invoice dispute Supplier relationship executive (salary) Total supplier costs 125 90 150 110 95 280 90 000 40 40 40 5 12 2 5 000 3 600 6 000 550 1 140 560 18 000 60 4 48 0 60% 6 000 5 400 9 000 440 4 560 0 54 000 30 38 38 15 12 13 20% 3750 3 420 5 700 1 650 1 140 3 640 18 000 20% $35 850 $79 400 $37 500 Purchase cost Performance index $560 000 .064 $775 000 .102 $437 000 .086 The warehouse for timber inventory at the rear of the factory has limited space. The maximum load can last five days of production while the lead time for timber supply can take up to three days to arrive, depending on the availability from suppliers and weather conditions. The timber used varies according to the models of the garden furniture made. Nguyen Thi Do Quyen, the marketing manager, has produced the following sales analysis for discussion. There are three species of timber used in the production and the supply is subject to seasonal fluctuation. Weather is the most important factor affecting the supply. However, certain suppliers do stock up a limited amount of timber in order to meet customers' demand. Although Jimbun always buys certain species from specific suppliers, he will switch suppliers when he cannot get the quantity needed from the original supplier. The purchase price is also a significant consideration since Jimbun is responsible for purchase price variances on timber material used. Table 1. Supplier's Performance Index ATBR BTBR CTBR Cost per unit of activity driver $ 100 No. of activities 10 No. of activities 0 $ 1 000 S No. of activities 2 $ 0 200 48 60 Activity Rework due to poor quality material Order material Receive order Inspect order Return material Pay supplier Invoice dispute Supplier relationship executive (salary) Total supplier costs 125 90 150 110 95 280 90 000 40 40 40 5 12 2 5 000 3 600 6 000 550 1 140 560 18 000 60 4 48 0 60% 6 000 5 400 9 000 440 4 560 0 54 000 30 38 38 15 12 13 20% 3750 3 420 5 700 1 650 1 140 3 640 18 000 20% $35 850 $79 400 $37 500 Purchase cost Performance index $560 000 .064 $775 000 .102 $437 000 .086 The warehouse for timber inventory at the rear of the factory has limited space. The maximum load can last five days of production while the lead time for timber supply can take up to three days to arrive, depending on the availability from suppliers and weather conditions. The timber used varies according to the models of the garden furniture made. Nguyen Thi Do Quyen, the marketing manager, has produced the following sales analysis for discussion