Outline of the Paper
The paper has been written as follows
The answers have been comprehensively written according to the instructions provided and in
reference to the course material
The benefits and drawbacks of single sourcing vs multiple sourcing approach.
The different components of total cost of ownership and how it can be used for a supplier
The advantages to retailers of sharing inventory
Car dealer example
i) The optimal batch size from the supplier’s point of view
ii) The consequences of uncoordinated production and replenishment order quantities for the
supplier and the car maker and how this issue might be resolved.
iii) Actions could the supplier take in order to achieve this result.
Running head: SUPPLY CHAIN QUESTIONS
Supply Chain Questions
SUPPLY CHAIN QUESTIONS
SUPPLY CHAIN QUESTIONS
Organizations run their operations by identifying the best supplies for their products and services.
To ensure that they meet customer satisfaction and get high returns; business goes for the best
vendor/supplier. Under normal circumstances, companies improve their efficiency by having a
single source business process outsourcing. Single source concept has numerous advantages. The
first one is that it the economy scales of businesses. This advantage boosts the buying power of an
organization. The second advantage is that single sourcing allows high investment ability of
business by enhancing a viable partnership approach. Single sourcing also helps a business in costsaving. All profit bound enterprises look forward to saving more by minimizing expenditure and
so on. This technique saves cost from the fact that the vendor meets all expenses. Single sourcing
has its disadvantages as well. When applying the concept in business for reliability, the business
has to meet all the requirements by the vendor. This attribute renders the technique expensive. The
services by a single source vendor frequently experience disruptions coming from various points.
The system may be experiencing technical hitches that require extended periods before finding a
solution. Single sourcing allows a single service provider (vendor). In its monopolistic nature, the
vendor may attempt to exploit a business. This setback comes from factors like overcharging, poor
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