Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have been working as an operations assistant at ABC Company, which assembles and sells coffee makers. Your target market is North America, and you

You have been working as an operations assistant at ABC

Company, which assembles and sells coffee makers. Your target market is North America, and you distribute your finished products in 15 models (8 colours for each model) through five large retailers in Canada and the U.S. You buy over 125 parts in different colours from 28 suppllers in Canada, China, U.S., India, and Vietnam. Because of having too many models and colours, you spend a lot of time on machinery setup and buying numerous parts in small quantities. Sometimes you run out of parts, so you import them by airplane. Furthermore, a couple of models have recently had technical issues due to the low quallty of a specific part that is purchased from a new supplier in China.

Finally, your price is a bit high, and your company has decided to gain a higher market share by using a cost leadership strategy.

The Chief Operations Officer (CCO) has asked you to prepare a presentation for the Board of Directors and propose some solutions for materials management activities to make your products and company more competitive. You should prepare a presentation that covers some Dos and don'ts of the Transportation of your materials management decisions. The strategies should align with your business strategy, which is cost leadership.

Please provide assumed detailed calculations covering all cost like inventory cost, transit cost, fraight charges and etc. in a tabular foam or either in excel. to support the answer. Additionally, Provide some more alternative suppliers from different places to save the cost of transportations.

Note: Provide accurate calcuation in tabular foam or excel and please dont provide do and dont for the following. Focus mainly on the assumptions of the calculations.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Accounting And Financial Audit

Authors: Landry Kouamé

1st Edition

620430481X, 978-6204304816

More Books

Students also viewed these Accounting questions