Supply Chain Management and Raw Materials
Case Study 8. 1 Sedgman Animate * Background * Sedgman Animate Inc. : * North American Co. (diversified) * Annual Sales of $1. 7 billion * Syracuse Bulb * Produces cut to breadth animate tubing and animate bedding to the automotive industry. * Customers accommodate specs for orders (eg. actinic comp. , thickness, diameter, etc. ) * Raw Abstracts supplied from 3 sources. * Tubing from sister co. (internally sourced. * Animate coils acclimated for animate area assembly multisourced (2 Co. * Physical Distribution * JIT (Just In Time) to chump base. * Policy * Abstracts appropriate 2 weeks above-mentioned to assembly * Procurement headed by Director of Abstracts Management (Isaac Theisen) * Alice McKenzie is the Assembly Actual Ascendancy Supervisor * Resposibilities are * Incoming/outcoming busline * Account ascendancy * Assembly planning/scheduling * Fill ante Asked to investigate ample bulk of accepted on duke raw abstracts account * Purchase absorb fabricated by Syracuse bulb was$ 65-75 million/year * Purchasing administrator @ ability was carefully complex with sales to ensure sales appraisement was in band with purchasing costs. * Account of raw abstracts on duke is $20 actor * Issues * Too abundant raw abstracts account on duke * Account is axle up rather than beign acclimated as connected amount of production. * Data Analysis * $20 actor in raw abstracts account Warehoused abutting to ability in 50,000 sq ft architecture * Fehr Acumen Company (FLC) apprenticed to run account and acumen (3PL) * Arrangement defined # of agents to be employeed and alive hours * Alice’s appointment * Barn is abounding with both types of raw abstracts * Trucks cat-and-mouse to be unloaded * 5 agents alive back 8 about was the approved agents active barn operations * Delivery of Raw abstracts was to be at atomic 2 weeks above-mentioned to assembly * Chump orders based accomplishment Fehr acumen controlled entering busline * Decision Criteria * Lowering Cost * Lowering Bulk of account * Maintaining assembly breeze * Meet time anatomy accustomed * Compliance with poilicies * Alternatives * Do annihilation * Ensure 8 agents are alive barn at all times accomplishing FLC’s arrangement obligations * Suspend affairs of raw abstracts for a abbreviate aeon of time until a acceptable block of raw actual is acclimated up. Build new purchasing processes for forcasting and aircraft requirements from suppliers * Refuse shipments of accepted PO’s so surplus raw abstracts can be acclimated up. * Absolve arrangement with FCL due to abridgement of competancy and appoint a new 3PL to alter of FCL. * Request Return of Acceptable approval from suppliers to get account abutting to optimum assembly standards. * Assumptions * FLC is not accomplishing their arrangement obligations * Purchasing has not forcasted accurately or purchased appeal amounts in band with assembly schedules.
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