Question
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 colors for each model) through five large retailers in Canada and the U.S. You buy over 125 parts in different colors from 28 suppliers in Canada, China, U.S., India, and Vietnam. Because of having too many models and colors, 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 quality 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. You should mention some Dos and don'ts of the following aspects of your materials management decisions. The strategies should align with your business strategy, which is cost leadership.
- Risk management
- Capacity planning and management
- Vendor selection strategies
- Transportation
- Inventory management
- Quality management
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