Supply Chain and Business Strategy

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Put together a PowerPoint presentation with 12–15
slides that can be used for both internal purposes and when you meet with all of
your vendors to kick off a vendor certification program. To earn full credit on
the PowerPoint, you must use colored slides, clip art or charts, or photos on
each slide to make them eye-appealing, along with 150–200
words of speaker notes for each slide, explaining the slide’s content. Slides
must not be covered with commentary; that is what the speaker notes are
for.

Assume the following information about a company:

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  • The company is currently assessing a make versus buy decision.
  • The company currently makes product line “A” using proprietary technology.
    Its variable cost/unit is $10, and its fixed cost allocation of overhead based
    on producing 10,000/yr is $20/unit, for a total standard cost of $30/unit.
  • The company also makes 3 other completely different and separate product
    lines on different equipment.
  • The company has a quote from an outside vendor for this product A, for
    $18/unit.

Assignment:

  • Given the data presented, what criteria would you use to evaluate the make
    versus buy decision that faces you? 
  • As a company’s managers create the optimum supply chain, there are many
    criteria that must be weighed, and in some cases, trade-offs are made. List at
    least 5 trade-off type decisions that the firm’s managers would have to make to
    establish the optimum supply chain. Include why it is a trade-off and the added
    information that you would need to actually make the best choice.

The following is an example of a trade-off:

  • Should the manufacturing plant be located closer to its raw material vendors
    or its customer base? Why?
  • Make up a checklist that a company’s vendor certification team should fill
    out when it visits a vendor prior to certifying them. What are the pros and cons
    of installing a vendor certification program

 
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